Intel (INTC) Stock

Intel Corp (NASDAQ:INTC, ETR:INL) announced that the nearly $8 billion in subsidies from the US government come with conditions that limit its ability to reduce its stake in its chipmaking division after a potential spin-off. A securities filing indicates that if Intel Foundry Services is separated as a private company, Intel must keep at least 50.1% ownership.

Intel has had a challenging year, with its stock price dropping by nearly 50% since the beginning of January. Additionally, the company was removed from the Dow Jones Industrial Average index in November.

On Wednesday, Intel announced that its agreement for $7.86 billion in U.S. government support limits the company's options to sell shares in its chipmaking division if it operates as a separate company.

Intel Corporation had a tough quarter, experiencing a 6% drop in revenue and notable losses. However, the management is focusing on growth and profitability by the end of fiscal year 2025, with plans to reduce the workforce by 15% and save $1 billion in non-product costs. They are also launching new products like Arrow Lake and Panther Lake, which are expected to improve profit margins since they won't have built-in storage on the chip.

Intel (INTC -3.30%) shares fell during trading on Tuesday. By the end of the day, the stock price had decreased by 3.3%.

Qualcomm's desire to buy Intel seems to have decreased because the challenges of acquiring the entire company have made the deal less appealing. This information was shared by Tom Mackenzie on Bloomberg Television.

Chris Miller, a professor at Tufts Fletcher School and the author of 'Chip War', appears on 'Squawk Box' to talk about the funding from the CHIPS Act, the current situation of chip manufacturing in the U.S., and other related topics.

Intel will receive $7.9 billion in federal funding from the Biden administration. The US Department of Commerce revealed this grant, which is part of the CHIPS Act, on Tuesday.

The Biden administration has completed an agreement that provides Intel with almost $7.9 billion in federal funding to support the growth of semiconductor manufacturing in the U.S. Tom Mackenzie shares the details on Bloomberg Television.