TSMC execs were said to have been particularly firm that it would give up its $6.6 million Chips Act subsidy if the government insisted on any such provision
The US government is taking 433.3 million Intel shares at a price of $20.47 per share, which is equivalent to a 9.9 percent stake in the company.
The government will not get a Board representation or other rights and will vote with the Intel’s Board of Directors on matters requiring shareholder approval, with limited exceptions.
The US government will receive a five-year warrant, at $20 per share for an additional five percent of Intel common shares, exercisable if Intel ceases to own at least 51% of the foundry business.
Bank of America pointed to disadvantages of the deal for Intel including a 10% dilution of the existing shareholders and pressure to deliver on projects like Ohio.
