Intel receives $5.7 billion in accelerated CHIPS Act funding

Intel Corporation (NASDAQ: INTC) received $5.695 billion in accelerated disbursements from the U.S. Department of Commerce under the CHIPS Act on August 27, 2025, according to a company filing.

The funding came through modifications to Intel's Direct Funding Agreement with the Department of Commerce. The amended agreement removed several previous requirements, including project milestone conditions and obligations for Intel to share a percentage of cumulative free cash flow with the government when projects exceed specified thresholds.

Intel certified it has spent at least $7.865 billion in eligible costs on projects under the original funding agreement. The company also issued 274.583 million shares of common stock to the Department of Commerce and provided a warrant allowing the government to purchase up to 240.516 million additional shares under certain conditions.

An additional 158.74 million shares were placed in escrow for the Department of Commerce, to be released as the government makes disbursements under the CHIPS Act's Secure Enclave program.

The modified agreement eliminated workforce policy requirements beyond those mandated by law and removed most other restrictions. However, Intel remains subject to prohibitions on using CHIPS Act funds for dividends or share repurchases, restrictions on transactions with prohibited foreign entities, and limitations on expanding semiconductor manufacturing capacity in certain foreign countries.

Intel must continue to comply with restrictions on joint research and licensing with certain foreign entities and cannot use the awards for facilities outside the United States. The Department of Commerce retains rights to seek repayment of awards if Intel breaches these remaining obligations.

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