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.

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

To build or expand semiconductor factories in several U.S. states.

The government grant is less than originally expected because the chip giant is also receiving separate funding for defense-related projects.

The Silicon Valley company will receive less money from the CHIPS Act after winning a $3 billion military contract and changing some of its investment commitments.

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,