Intel’s funding agreement with the US Government has been revised, with several CHIPS Act requirements removed after Washington agreed to take an equity stake in the company.

According to a filing on Friday, Intel will no longer need to meet specific project milestone requirements to receive funding.

As long as it demonstrates it has already spent US$7.9 billion (A$12 billion) on eligible projects under an agreement signed with the Commerce Department last November.

The company also no longer has to share with the Commerce Department a percentage of cumulative free cash flow from projects that exceed specified thresholds.

In addition, some workforce policy requirements have been lifted, along with most other restrictions.

The remaining conditions still prohibit Intel from using CHIPS Act funds for dividends or share repurchases, as well as from undertaking change-of-control transactions with certain prohibited groups.

It seems the rules get relaxed when the government takes an equity stake.

Intel recently confirmed that the US Government would take an equity stake largely funded by US$5.7 billion (A$8.6 billion) in grants that had been awarded but not yet paid.

The stake represents a shift in how the CHIPS and Science Act is being implemented, with direct ownership replacing conditional subsidies.

The latest changes come after a high-profile series of negotiations between the Trump administration and Intel. As reported by Channel News, the Trump administration converted a portion of CHIPS Act support into a 9.9% holding in the company, with an option to expand if Intel divests its foundry business.

Other semiconductor firms receiving CHIPS Act funding are likely to closely monitor whether similar adjustments are applied to their agreements as government policymakers refine the program.