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Investing.com -- The Trump administration is exploring the possibility of using US Chips Act funds to acquire a stake in Intel Corp. (NASDAQ:INTC), according to a report Friday from Bloomberg, citing people familiar with the early-stage discussions.
The talks center on using Chips Act funding to at least partially finance an equity position in the American chipmaker. Options under consideration may include converting some or all of Intel’s existing Chips Act grants into equity, allocating new funding from the broader Chips Act pool, or combining Chips Act money with other financing sources.
Intel has already been designated as the largest recipient of Chips Act funding, with $7.9 billion in grants allocated for commercial semiconductor manufacturing and up to an additional $3 billion for the Pentagon’s Secure Enclave program. The company can also access up to $11 billion in loans under the 2022 law.
The discussions remain fluid, with sources speaking on condition of anonymity due to the private nature of the negotiations.
Intel CEO Lip-Bu Tan, who met with President Donald Trump on Monday, is reportedly secure in his position despite previous criticisms from the president.
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