Intel has cautioned that the U.S. government’s newly announced 10% ownership in the company could spark “adverse reactions” from investors, employees, and international partners. The warning came Monday in a filing with the Securities and Exchange Commission.
A key risk lies in global sales: 76% of Intel’s $53.1 billion fiscal 2024 revenue came from outside the U.S., making the company directly exposed to President Donald Trump’s shifting tariff and trade policies. The filing noted potential fallout from foreign governments, suppliers, and customers, along with possible litigation and political scrutiny.
The agreement, unveiled Friday, grants the Department of Commerce up to 433.3 million Intel shares, diluting current shareholders. Much of the purchase is funded by Intel’s earlier $11.1 billion in federal awards through the Biden administration’s CHIPS Act and related programs.
Trump praised the deal as “a great Deal for America,” stressing the importance of advanced chip production. Intel shares have already risen about 25% this month as anticipation of the deal grew.
Still, Intel admitted it has not completed analysis of all “financial, tax, and accounting implications.” The filing also warned that the government’s voting rights could limit certain shareholder decisions, as Commerce could block moves to unwind the deal.
Intel enters this new chapter after a rocky 2024 that saw the departure of CEO Pat Gelsinger, with the company losing ground in the AI race against rivals.