The US Commerce Department announced the subsidy to Intel as part of $39 billion for the sector including Taiwan Semiconductor Manufacturing Co and others in an effort to revitalise chip manufacturing in the United States.

Chipzilla Chief Executive Pat [kicking] Gelsinger has said that the company planned to spin its chip manufacturing operations into a subsidiary, and was open to taking on outside investors in the unit, called Intel Foundry.

In a securities filing, Intel said on Wednesday the subsidies require it to own at least 50.1 per cent of Intel Foundry if the unit is separated into a new privately held legal entity.

If Intel Foundry becomes a public company and Intel itself is not the largest shareholder, the company could sell only 35 per cent of Intel Foundry to any single shareholder before running into change-in-control provisions.

 A Commerce Department spokesman said the government is negotiating change-in-control provisions with all direct grant recipients.

Intel would need to comply with the restrictions to continue the company's $90 billion worth of projects in Arizona, New Mexico, Ohio, and Oregon and keep manufacturing cutting-edge chips in the US, according to the filing.

Any changes in control could require Intel to seek permission from the U.S. Department of Commerce, the filing said.