Aug 25 (Reuters) - Intel ( INTC ) said on Monday that

the 10% stake by the U.S. government in the chipmaker could pose

risks to its business, from potentially harming international

sales to limiting its ability to secure future government

grants.

The company laid out the new "risk factors" in a securities

filing after the government decided to convert government grants

into an equity stake in Intel ( INTC ), the latest extraordinary

intervention in corporate America by President Donald Trump.

It is uncertain if this deal may result in other government

entities trying to convert their existing grants into equity

investments or if they might be unwilling to support future

grants, the company said.

Intel ( INTC ) shares will be bought with the $5.7 billion in unpaid

grants from the Biden-era CHIPS Act and $3.2 billion awarded to

Intel ( INTC ) for the Secure Enclave program, also given under Trump's

predecessor, Democratic President Joe Biden.

"To the maximum extent permissible under applicable law,"

Intel's ( INTC ) obligations under the CHIPS Act will be considered

discharged, barring the Secure Enclave program, according to the

filing.

The transaction is expected to close on August 26.

Intel's ( INTC ) non-U.S. business may also be impacted by the U.S.

government being a significant stockholder as this could subject

the company to additional regulations or restrictions such as

foreign subsidy laws in other countries, the filing said.

Sales outside the U.S. accounted for 76% of its revenue for

the fiscal year ended December 28, 2024, while revenue from

China contributed 29% to total revenue.

Trump's deal with Intel ( INTC ) came after CEO Lip-Bu Tan's meeting

with the president, who had demanded his resignation over his

ties to Chinese firms.

The company also said that the shares to be issued to the

U.S. government at a discount to the current market price is

dilutive to existing stockholders.

The government is purchasing Intel ( INTC ) shares at a $4 discount

to Intel's ( INTC ) closing stock price of $24.80 on Friday.

The government's stake also reduces the voting influence of

other stockholders, while its substantial additional powers over

laws and regulations impacting Intel ( INTC ), may limit Intel's ( INTC ) ability

to pursue transactions that benefit shareholders, the filing

said.

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Arun

Koyyur)