Aug 29 (Reuters) - Intel ( INTC ) said on Friday it

amended the CHIPS Act funding deal with the U.S. Department of

Commerce to remove earlier project milestones and received about

$5.7 billion in cash sooner than planned.

The move will give Intel ( INTC ) more flexibility over the funds.

The amended agreement, which revises a November 2024 funding

deal, retains some guardrails that prevent the chipmaker from

using the funds for dividends and buybacks, doing certain

control-changing deals and from expanding in certain countries.

As part of the deal, Intel ( INTC ) issued the U.S. government 274.6

million shares and promised the government the option to buy up

to 240.5 million more shares under certain conditions.

Intel ( INTC ) said it has set aside 158.7 million shares in an

escrow account to be released after the government makes

available more CHIPS funds for the Secure Enclave program,

designed to expand advanced chips manufacturing.

The company also said it has spent at least $7.87 billion on

eligible CHIPS Act-funded projects.

The U.S. government's move to take a 9.9% equity stake in Intel ( INTC )

sparked questions about the outlook for corporate America after

President Donald Trump said he plans to do other similar deals.

The government's $8.9 billion investment is in addition to

the $2.2 billion in grants Intel ( INTC ) has previously received, making

for a total investment of $11.1 billion, the company has said.

The Intel ( INTC ) stake, announced by the U.S. government last week, is

an incentive for the chipmaker to retain control of its contract

manufacturing business, or foundry, Intel's ( INTC ) finance chief David

Zinsner said at an investor conference on Thursday.