Intel Warns of Potential Risks from Trump Deal, Citing International Sales Concerns and Governance Implications.

Intel has warned of potential risks for shareholders and international sales due to the Trump administration's 10% stake in the company. The deal could lead to adverse reactions from investors, employees, and customers, as well as increased public scrutiny and potential litigation. Intel's international sales account for 76% of its revenue, and the company's ties to Trump's tariffs and trade policies could impact its global business.

Intel Corporation has issued a securities filing outlining potential risks to its business, including international sales and future government grants, stemming from the U.S. government's new 10% stake in the chipmaker [1]. The intervention, a result of President Donald Trump's extraordinary corporate policy, could have significant implications for the company and its stakeholders.

Intel's filing, submitted on Monday, August 25, 2025, details how the U.S. government's acquisition of $5.7 billion in unpaid grants from the 2022 CHIPS and Science semiconductor subsidy law and $3.2 billion from the Secure Enclave program could affect the company's operations. The shares are being acquired at a discount, with the government purchasing them at $20.80 each, $4 below Intel's closing price of $24.80 on Friday [1].

The filing highlights several concerns. Firstly, the U.S. government's significant stake could lead to additional regulations or restrictions, such as foreign subsidy laws, potentially impacting Intel's international sales. Sales outside the U.S. accounted for 76% of Intel's revenue in fiscal 2024, with China contributing 29% [1]. Secondly, Intel warned that the deal could prompt other government entities to convert their existing grants into equity investments or withhold future grants, potentially limiting the company's access to crucial funding.

Moreover, the filing notes that the government's stake reduces the voting power of other shareholders and gives Washington significant influence over laws and regulations affecting Intel, which could limit the company's ability to pursue transactions that benefit shareholders [1].

Intel CEO Lip-Bu Tan, in a video posted by the Commerce Department, stated that the company does not need the government funding but welcomes the U.S. as a shareholder [2]. However, the filing raised questions about the U.S. investment, noting the uncertainty regarding other government entities' actions and potential restrictions on future grants.

The announcement has sparked reactions from investors and analysts. Intel shares rose 2% in early trading on Monday to $25.25, indicating a positive market response to the news [2]. However, the long-term impact of the U.S. government's stake on Intel's operations and shareholder value remains to be seen.

References:
[1] https://www.calcalistech.com/ctechnews/article/512blkp9f
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UH0U2:0-intel-warns-us-stake-could-hurt-international-sales-future-grants/