The Trump administration made an unprecedented, and confusing, move last week when it announced plans to convert money Intel was supposed to receive through Joe Biden-era government grant programs into a 10% equity stake.

While it remains unclear if converting those government grants into equity is even possible — that’s up for debate — it’s even less obvious how this move will solve Intel’s biggest problem, its waffling foundry business. Even Intel is unconvinced.

Intel Foundry, which manufactures custom semiconductors for outside customers, has not been fruitful for the company. The business division lost out on potential big contracts, like one with Sony, according to Reuters , and has cost the company significantly more than it has brought in.

Intel Foundry reported an operating

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