Software and chipmaker Intel stated that the US government’s 9.9% stake in the company jeopardizes international sales and future government aid. This disclosure was included in a securities filing filed Monday.

Intel Issues Critical Warning

The Donald Trump administration has decided to convert a portion of the $11 billion in grants previously pledged to Intel into stock. This type of government intervention in companies is a hot topic. Intel shares rose 2% to $25.25 following these developments.

Intel CEO Lip-Bu Tan stated in a video released by the Department of Commerce that they did not need the grant but would very much like the US government to be a shareholder. However, the company’s securities filing highlighted the uncertainties that the government’s investment could create.

The filing noted that it was unclear whether this situation would lead to other government agencies attempting to convert existing grants into stock or to the denial of future grants.

The US government will acquire Intel’s shares based on $5.7 billion in outstanding grants awarded under the 2022 CHIPS and Science Act and $3.2 billion awarded last year for the Secure Enclave program.

Intel also noted that a large government stake could impact the company’s international business. It added that the company could face additional restrictions due to subsidy laws or other regulations in foreign countries. Last year, 76% of the company’s revenue came from sales outside the US, 29% of which were in China.