Intel CFO: The U.S. government's funding will prioritize debt repayment and will always cooperate with TSMC.

Intel ( CFO David Zinsner stated at the Citigroup 2025 Global Technology, Media, and Telecommunications Conference on September 4th that the company will use the funds injected by the U.S. government to pay off debts maturing at the end of the year, while emphasizing that TSMC ) is a "forever partner."

U.S. government holding shares eliminates subsidy uncertainty.

According to reports, Zinsner mentioned during a conversation with Citigroup analyst Christopher Danely that Intel had approximately $5.7 billion in subsidies pending before the U.S. government took a stake. Although they have currently received $2.2 billion in government allocations, it is still uncertain whether they will obtain the remaining $5.7 billion.

He added that even the 2.2 billion dollars in subsidies already received come with a "clawback clause" ( Clawback ), and in the "CHIPS Act" ( CHIPS Act ), the 3 billion dollars allocated specifically for Intel in the Secure Enclave program is also not fully confirmed, as there are still variables regarding the disbursement method and the exact timing of the funds.

Zinsner stated that the Trump administration's direct investment this time solves these uncertainties all at once, and apart from the $3 billion that will be disbursed in batches over several years, the remaining funds can be accessed immediately.

( Note: The recourse clause means that although the government has initially provided subsidies, if Intel does not meet the agreed investment amount, production capacity, employment, schedule, compliance, etc., the government can reclaim the funds that have already been distributed. The $3 billion funding for Secure Enclave is part of a program under the Chips & Science Act, aimed at enhancing the U.S. government's trusted manufacturing capabilities in leading semiconductor production. This funding specifically supports Intel in creating a highly secure and trusted domestic chip supply chain for the U.S. government. )

The Trump administration does not interfere with Intel's operations, and all funds will be used to repay debts.

Regarding concerns from the outside that the Trump administration's equity investment might interfere with the company's operations, Zinsner emphasized that the government will primarily rely on board voting resolutions and will not intervene additionally.

At the same time, he also revealed that the Intel Altera spin-off is expected to be completed in a few weeks, which could bring in $3.5 billion, while the funding from SoftBank ( is expected to be in place within this quarter, pending regulatory approval.

Zinsner said Intel will use the funds to pay off $3.8 billion in debt due this year, specifying:

"We plan to repay the loan upon maturity and will not extend or continue financing."

) Note: The Intel Altera spin-off case refers to Intel signing a contract with its subsidiary fund Silver Lake in April this year to sell 51% of Altera's equity. Intel estimates it will receive approximately 4.4 billion USD in net cash, and this transaction is expected to be completed in the second half of 2025. (

Possible delay in the spin-off of the wafer foundry business

When asked whether the wafer foundry )Foundry( business would be spun off into a subsidiary to facilitate external investment, Zinsner responded:

"It's not impossible, but the likelihood of it happening in the short term is low, as the business does not yet have investment appeal."

He added that since the government has reserved warrants, if shares are really sold in the future, the proportion sold will not exceed 49%.

Acknowledging past excessive investment, holding confidence in new processes

Zinsner admitted that Intel spent too much money on advanced demand in the past, which brought many problems. However, he stated that CEO Chen Lifeng has great confidence in the new generation 14A process technology.

He acknowledged that, although there is still a theoretical risk of "no customer adoption and wasted capacity," the probability is relatively low. Regarding costs, Zinsner stated that the unit wafer cost for 14A will be higher than that for 18A, mainly due to the introduction of High-NA EUV lithography machines, along with additional exposure steps that make the process more complex and consequently increase costs.

Intel will continue to cooperate with TSMC

Speaking about foundry cooperation, Zinsner stated that Intel has outsourced some of its products to TSMC in recent years. This level of reliance will vary with business performance and product line adjustments, but he emphasized:

"To be honest, we will always hand over the production of our products to TSMC; they are a great partner."

Currently, Intel's Lunar Lake and Arrow Lake products are all manufactured by TSMC. He revealed that at this stage, about 30% of the products come from TSMC, and although the proportion will decrease in the future, it will still be higher than the level of ten years ago.

The image shows Intel's Lunar Lake and Arrow Lake chips.

)Intel released an official press release! Announced that the Trump administration is investing $8.9 billion to build semiconductor manufacturing in the United States(

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