Intel has revised its CHIPS Act funding agreement with the U.S. Department of Commerce, allowing the company to receive $5.7 billion in cash earlier than originally planned while easing several restrictions tied to the initial deal.
In a recent filing, Intel revealed that under the amended terms, it can now access government funding once it demonstrates having spent at least $7.9 billion on agreed-upon semiconductor projects. According to Reuters, Intel has already invested $7.87 billion in eligible CHIPS Act-funded initiatives, placing it just shy of the threshold required to unlock the early payout.
The updated agreement also relaxes several key obligations. Intel will no longer be required to:
-
Share a percentage of cumulative cash flows from funded projects with the Commerce Department
-
Comply with certain CHIPS Act workflow policy requirements
-
Adhere to several other operational restrictions tied to the original funding terms
However, Intel still cannot use the funds for dividend payments or stock buybacks.
The amendment comes amid broader changes in the federal government’s approach to semiconductor investments. Earlier this year, the U.S. government agreed to take an equity stake in Intel, acquiring $8.9 billion in Intel common stock. This investment comprises the $5.7 billion initially earmarked under the CHIPS Act, alongside an additional $3.2 billion from the Secure Enclave program, designed to bolster domestic chip manufacturing and secure supply chains.
Intel CEO David Zinser confirmed that the company received the $5.7 billion transfer on Wednesday night, marking a significant cash infusion. Combined with a previous $2.2 billion CHIPS Act grant, the U.S. government’s total financial involvement with Intel now stands at $11.1 billion.
The move reflects Washington’s continued commitment to expanding domestic semiconductor production while giving Intel greater financial flexibility as it accelerates its U.S.-based manufacturing projects.
