Intel's funding agreement with the U.S. government has loosened some requirements now that it is taking some stake in the chip company.
Intel no longer needs to meet certain project milestone requirements to receive funding, as long as it shows that it already spent $7.9 billion in eligible costs on projects under an agreement signed with the Commerce Department in November, Intel said in a filing Friday.
It also no longer needs to share with the Commerce Department a percentage of the total cumulative free cash flow it gets from each project in excess of specified thresholds.
The government has also agreed to remove some workforce policy requirements and most other restrictions, other than a restriction on funds received under the CHIPS Act for dividends or share repurchases and on change of control transactions with certain prohibited groups.
Intel said earlier this week that the U.S. government would take an equity stake funded by the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the CHIPS Act.
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