• Intel has received $5.7 billion as part of a deal negotiated with the Trump administration.
• The deal includes a potential 5% warrant if Intel's ownership of its foundry falls below 51%.
• White House spokesperson indicated that the deal is still under negotiation with the Department of Commerce.
• Intel CFO downplays the risk of outside control over its manufacturing unit.
• The investment aims to bolster domestic chip production capabilities amid industry competition.

Intel (INTC.O) announced that it received $5.7 billion in cash as part of a deal negotiated with the Trump administration for a 10% equity stake in the semiconductor company. CFO David Zinsner confirmed during an investor conference that the funds were received on Wednesday night, marking a significant financial maneuver aimed at stabilizing the struggling chipmaker's operations, particularly its foundry business, which has faced considerable pressure from competition and profitability concerns, according to Reuters and Al Jazeera.

The investment includes a provision that allows the government to acquire an additional 5% stake through a warrant, contingent upon Intel's ownership of its foundry operation falling below 51%. Zinsner stated, "I don’t think there’s a high likelihood that we would take our stake below 50 percent,” suggesting confidence that the warrant would expire worthless if this threshold is maintained. He emphasized that the government’s primary objective is to ensure Intel maintains control over its manufacturing capabilities, according to Reuters and India Times.

Despite the substantial investment, White House press secretary Karoline Leavitt indicated that the deal is still being finalized by the Department of Commerce. "The Ts are still being crossed, the I’s are still being dotted," she stated, indicating ongoing discussions regarding the specifics of the agreement. This clarification raises questions about the full implementation of the deal, as competitive pressures within the chip manufacturing sector continue to grow, particularly from firms like NVIDIA, reports Al Jazeera and India Times.

Intel is strategically looking to enhance its foundry business and is reportedly open to potential outside investment in this sector, with Zinsner expressing a preference for "strategic investors." However, he also noted that the company is "years away from" bringing in such partners, highlighting the long-term focus of the company's recovery plans, according to Reuters and Al Jazeera.