HomeTrump Administration Deal Bars Intel from Offloading Foundry Business
The Trump administration appears determined to exert influence over Intel’s strategic decisions regarding its underperforming foundry business unit.
According to a Financial Times report from a Deutsche Bank conference on Thursday, Intel CFO David Zinsner revealed new details about the company’s recent agreement with the Trump administration, which granted the U.S. government a 10% equity stake.
The arrangement includes provisions to penalize Intel if it spins off its foundry business—which produces custom chips for external clients—within the next several years.
Last week’s deal featured a five-year warrant enabling the U.S. government to acquire an additional 5% stake in Intel at $20 per share, should the company’s ownership in its foundry operations fall below 51%. Zinsner indicated he expects that warrant to expire unused.
“From the government’s perspective, they shared our view; they did not want to see us spin off or sell the business to another party,” he stated.
Zinsner added that Intel received $5.7 billion in cash on Wednesday as part of the agreement, Reuters reported. (These funds represent remaining grants previously allocated to Intel under the U.S. CHIPS and Science Act that had not yet been disbursed.)
White House press secretary Karoline Leavitt informed reporters today that final details of the deal are still being finalized.
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Tech and VC heavyweights join the Disrupt 2025 agenda
Netflix, ElevenLabs, Wayve, Sequoia Capital—just a few of the prominent names featured on the Disrupt 2025 agenda. They’ll provide essential insights to fuel startup expansion and strengthen your competitive position. Don’t miss the 20th anniversary of TechCrunch Disrupt—your chance to learn from leading tech voices. Register today and save $675 before rates go up.
San Francisco | October 27-29, 2025 REGISTER NOW Intel declined to comment beyond Zinsner’s statements.
This deal structure clearly reflects the Trump administration’s push to strengthen domestic chip manufacturing, as many industry players increasingly rely on Taiwan Semiconductor Manufacturing Company’s offshore production.
However, the warrant also compels Intel to maintain a business unit that is currently unprofitable. Intel Foundry reported a $3.1 billion operating loss in the second quarter and has been a challenging segment for the semiconductor company.
Analysts, board members, and investors have all advocated for spinning off the struggling foundry unit—a move that seemed likely last autumn, before Intel Foundry’s architect, former CEO Pat Gelsinger, unexpectedly retired in December.
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Comments (2)
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![HarryMartinez]()
So the Trump administration is basically telling Intel 'you can't sell your failing foundry business'? That seems like a weird move. I mean, if Intel can't compete with TSMC, why force them to keep losing money? 🤔 Maybe there's some national security angle, but it feels like micromanaging a private company. Interesting times.
![NicholasYoung]()
インテルのファウンドリ事業にこんな縛りがあるなんて面白い。でも、政権がここまで企業の戦略に口を出すのは過剰介入じゃない？半導体は確かに重要だけど、自由な市場競争こそが技術革新を生むと思うんだよね。🇯🇵
The Trump administration appears determined to exert influence over Intel’s strategic decisions regarding its underperforming foundry business unit.
According to a Financial Times report from a Deutsche Bank conference on Thursday, Intel CFO David Zinsner revealed new details about the company’s recent agreement with the Trump administration, which granted the U.S. government a 10% equity stake.
The arrangement includes provisions to penalize Intel if it spins off its foundry business—which produces custom chips for external clients—within the next several years.
Last week’s deal featured a five-year warrant enabling the U.S. government to acquire an additional 5% stake in Intel at $20 per share, should the company’s ownership in its foundry operations fall below 51%. Zinsner indicated he expects that warrant to expire unused.
“From the government’s perspective, they shared our view; they did not want to see us spin off or sell the business to another party,” he stated.
Zinsner added that Intel received $5.7 billion in cash on Wednesday as part of the agreement, Reuters reported. (These funds represent remaining grants previously allocated to Intel under the U.S. CHIPS and Science Act that had not yet been disbursed.)
White House press secretary Karoline Leavitt informed reporters today that final details of the deal are still being finalized.
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San Francisco | October 27-29, 2025 REGISTER NOWIntel declined to comment beyond Zinsner’s statements.
This deal structure clearly reflects the Trump administration’s push to strengthen domestic chip manufacturing, as many industry players increasingly rely on Taiwan Semiconductor Manufacturing Company’s offshore production.
However, the warrant also compels Intel to maintain a business unit that is currently unprofitable. Intel Foundry reported a $3.1 billion operating loss in the second quarter and has been a challenging segment for the semiconductor company.
Analysts, board members, and investors have all advocated for spinning off the struggling foundry unit—a move that seemed likely last autumn, before Intel Foundry’s architect, former CEO Pat Gelsinger, unexpectedly retired in December.
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So the Trump administration is basically telling Intel 'you can't sell your failing foundry business'? That seems like a weird move. I mean, if Intel can't compete with TSMC, why force them to keep losing money? 🤔 Maybe there's some national security angle, but it feels like micromanaging a private company. Interesting times.
インテルのファウンドリ事業にこんな縛りがあるなんて面白い。でも、政権がここまで企業の戦略に口を出すのは過剰介入じゃない？半導体は確かに重要だけど、自由な市場競争こそが技術革新を生むと思うんだよね。🇯🇵
