In September, Intel CEO Pat Gelsinger announced plans to spin off Intel Foundry, citing potential flexibility to secure independent funding.

Intel 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.

Intel's $7.86B subsidy mandates it keep majority control of its chip unit, Intel Foundry, and get US approval for ownership changes.

The U.S. Department of Commerce announced that it will make a final award to Intel Corp. of up to nearly $7.87 billion in direct funding under the CHIPS and Science Act, the largest such grant to any company but slightly below the preliminary $8.5 billion that had been announced earlier.

The US Commerce Department announced the subsidy in an effort to revitalize chip manufacturing in the United States.

Intel must maintain control of Intel Foundry even in case it decides to spin it off into a separate private or public company.

Intel revealed that the U.S. government subsidies require it to retain at least 50.1% ownership of Intel Foundry if separated into a private entity, and limit sales to a single shareholder to 35% if the unit becomes public,

Intel has said that its deal for $7.86 billion in US government subsidies restricts the company's ability to sell stakes in its chipmaking unit if it becomes an independent entity. The US Commerce Department announced the subsidy to Intel on Tuesday,