Nov 27 (Reuters) - Intel ( INTC ) said on Wednesday its

deal for $7.86 billion in U.S. government subsidies restricts

the company's ability to sell stakes in its chipmaking unit if

it becomes an independent entity.

The U.S. Commerce Department announced the subsidy to Intel ( INTC )

on Tuesday, part of $39 billion for the sector including Taiwan

Semiconductor Manufacturing Co ( TSM ) and others in an effort

to revitalize chip manufacturing in the United States.

Intel ( INTC ) Chief Executive Pat Gelsinger in September said that

the company planned to spin its chip manufacturing operations

into a subsidiary and was open to taking on outside investors in

the unit, called Intel Foundry.

In a securities filing, Intel ( INTC ) said on Wednesday the

subsidies require it to own at least 50.1% of Intel Foundry if

the unit is separated into a new privately held legal entity. If

Intel Foundry becomes a public company and Intel ( INTC ) itself is not

the largest shareholder, the company could sell only 35% of

Intel Foundry to any single shareholder before running into

change-in-control provisions.

Intel ( INTC ) did not immediately respond to a request for comment

on the disclosures. A Commerce Department spokesman said the

government is negotiating change-in-control provisions with all

direct grant recipients.

Intel ( INTC ) would need to comply with the restrictions to continue

the company's $90 billion worth of projects in Arizona, New

Mexico, Ohio, and Oregon and keep manufacturing cutting-edge

chips in the U.S., according to the filing. Any changes in

control could require Intel ( INTC ) to seek permission from the U.S.

Department of Commerce, the filing said.