This article first appeared on GuruFocus.
GlobalFoundries (GFS, Financials) said Wednesday that its funding under the U.S. CHIPS Act does not involve any equity stake, distancing itself from the government’s recent agreement with Intel.
The clarification came from Chief Financial Officer John Hollister during the Deutsche Bank Technology Conference. Hollister said the company’s support from the U.S. government remains well intact and is being disbursed based on the completion of specific project milestones.
The statement follows the Trump administration’s move to convert Intel’s CHIPS Act grants into a 10% equity stake, along with other aggressive moves including agreements to take 15% of China-related chip revenue from Nvidia and AMD.
While Intel’s deal sparked concerns about state influence over corporate decisions, GlobalFoundries emphasized that its own agreement under the law is based on non-equity terms.
GlobalFoundries is using its CHIPS funding to expand fabrication capacity and invest in emerging technologies. The company raised its long-term investment plans to $16 billion earlier this year, with $1 billion allocated to capital expenditures and another $3 billion toward R&D.
Hollister said the current capital plan is designed to support more than a decade of growth.
Investors should monitor how these CHIPS Act agreements evolve across the semiconductor sector, especially as Trump administration policies take further hold.