04:20 PM EDT, 08/28/2025 (MT Newswires) -- Intel's ( INTC ) deal with the Trump administration was drawn to prevent the chipmaker from selling its foundry unit, its chief financial officer said Thursday during a conference, as the government pushes for a boost in domestic manufacturing.

The US government agreed to take a 10% stake in Intel ( INTC ) last week, in a deal that converted $8.9 billion of federal grants into an equity share.

The agreement also includes a five-year warrant that enables the government to acquire an additional 5% of the company if Intel ( INTC ) ceases to own 51% of its foundry business, which is intended to make chips for third-party clients.

"I don't think there's a high likelihood that we would take our stake below the 50%," said CFO David Zinsner in a Deutsche Bank conference, according to a FactSet transcript. "I think from the government's perspective, they were aligned with that. They didn't want to see us take the business and spin it off or sell it to somebody."

Intel ( INTC ), which reported a Q2 adjusted loss of $0.10 per share last month, has implemented cost-cutting measures, and Zinsner said the company needs cash to strengthen its balance sheet.

The government's deal "eliminated the need to access capital markets", Zinsner added.

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