Intel announces amendment of CHIPS Act deal, receives $5.695B early

In a regulatory filing, Intel (INTC) announced that on August 27, 2025, consistent with the previously announced Warrant and Common Stock Agreement, dated as of August 22, 2025, between Intel Corporation and the Department of Commerce of the United States government, the Company and the DOC entered into the Implementing Amendment to Direct Funding Agreement amending and modifying the Direct Funding Agreement, dated as of November 25, 2024, between the Company and the DOC, to release the Company from certain obligations under the DFA. The DFA Amendment makes the following amendments to and modifications of the DFA: Removal of prior project milestone requirements and certain other conditions to disbursements under the DFA, with the Company certifying that it has spent to date in aggregate at least $7.865 billion in eligible costs on projects under the DFA; Removal of the requirement that the Company share with the DOC a percentage of the total cumulative free cash flow achieved by each project in excess of specified thresholds; Removal of workforce policy requirements except as required by law; and Removal of most other restrictions other than: Restrictions on using funds received under the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 for dividends or share repurchases; and Restrictions on “change of control” transactions with prohibited persons or “foreign entities of concern” under the CHIPS Act. On August 27, 2025, the closing occurred under the Purchase Agreement, at which time: the Company received the full amount of the accelerated disbursements under the DFA of $5.695 billion; and the Company issued to the DOC 274,583,000 shares of common stock and a warrant to purchase up to 240,516,150 shares of common stock, exercisable under certain conditions, and issued into escrow 158,740,000 shares of common stock for the benefit of the DOC to be released as the US Government makes disbursements to the Company under the CHIPS Act’s Secure Enclave program