New Delhi, Sept. 7 -- Late last month, the US government acquired a 9.9% stake in chipmaker Intel Corp. for $8.9 billion by converting $5.7 billion in unpaid CHIPS Act grants and adding fresh funds. Coupled with a separate $2 billion investment from Japan's SoftBank, the deal provides a critical lifeline to the company weighed down by mounting losses and slipping competitiveness.

Intel has reported six straight quarterly losses, including $2.9 billion in Q2 2025. For the full year 2024, it reported a loss of $18.8 billion, its first annual loss since 1986. Its free cash flow has been negative since 2022, burning through more than $15 billion in 2024 alone. This was due to a substantial increase in capital expenditure amid lower revenues....