According to the latest report from Bloomberg, the U.S. government is currently discussing taking a 10% stake in Intel Corp. Late last week, we reported on Intel's CEO Lip-Bu Tan's visit to the White House to discuss the future of Intel as America's most important semiconductor manufacturer. And today, parts of the deal seem to be near completion, according to sources close to Bloomberg. Reportedly, some or all of Intel's CHIPS Act grants are going to be converted by the federal government into an equity stake in the company, which could help fuel further Intel Foundry expansion and R&D investments. Intel's CHIPS Act funding has reportedly not yet been reflected in the balance sheet, as the company has issued warnings in the past that these grants have been slow to arrive. However, under the new initiative, the U.S. government now plans to use this grant funding as a way to get equity in Intel Corp and become its largest shareholder with a 10% share.

Historically, Intel has been awarded roughly $10.9 billion in CHIPS Act grants for commercial and military applications. However, that funding hasn't materialized yet. What the U.S. now plans is a 10% stake, roughly worth $10.5 billion, which would practically mean the same thing, with voting power over company decisions as its largest stakeholder.