Intel's €7.5bn subsidy deal restricts sale of its manufacturing unit

The US Commerce Department announced the subsidy in an effort to revitalize chip manufacturing in the United States.

Intel CEO Pat Gelsinger delivers a speech at the COMPUTEX forum in Taipei, Taiwan June 4, 2024. REUTERS/Ann Wang/File Photo

Intel said on Wednesday its deal for $7.86bn (€7.5bn) in U.S. government subsidies restricts the company's ability to sell stakes in its chipmaking unit if it becomes an independent entity.

The US Commerce Department announced the subsidy to Intel on Tuesday, part of $39bn for the sector including Taiwan Semiconductor Manufacturing and others in an effort to revitalize chip manufacturing in the United States.