Now that Intel has signed a contract to get $7.865 billion in grants under the CHIPS and Science Act from the U.S. government, it cannot sell its Intel Foundry manufacturing unit and must maintain a controlling stake even in case it spins it off and makes it a public company under the terms of the agreement. Also, the contract restricts any third party from acquiring a substantial stake in Intel, Reuters noted.
Intel must keep at least 50.1% ownership of Intel Foundry if it decides to spin it off into a private company. If Intel Foundry goes public, no third party can own 35% or more unless Intel stays the largest shareholder. Additionally, Intel must retain control of Intel Foundry and all the other entities that receive funding under the agreement. Finally, under the terms of the deal, the agreement limits third parties from acquiring 35% or more of Intel's ownership or voting rights.
