US government invests $9 billion in Intel to boost chip manufacturing and job creation.

The US government is investing nearly $9 billion into Intel, acquiring a 9.9% equity stake in the company. This funding, part of the CHIPS Act, aims to boost domestic chip production and create jobs. However, analysts say the money may not be enough for Intel's contracting business to succeed without significant clients. Intel CEO Lip Bu Tan warned the company might exit the chip contracting business without securing major clients. Intel plans to use the funds to expand its US factories, with high-volume production expected to start later this year.