Intel and US to Finalise $8.5 Billion in Chips Funding by Year-End, FT Reports

Reuters09-27

Intel and the U.S. government will likely finalise $8.5 billion in direct funding for the chipmaker before the end of the year, the Financial Times reported on Friday, citing people familiar with the discussions.

The discussions were at an advanced stage, but there was no guarantee it will be finalised before 2024 end, the report said, adding that any takeover of all or part of Intel's business could risk disrupting the talks.

Intel and the U.S. Department of Commerce did not immediately respond to Reuters' requests for comment.

U.S. President Joe Biden awarded Intel nearly $20 billion in grants and loans in March to boost the company's domestic semiconductor chip output.

The preliminary agreement was for $8.5 billion in grants and up to $11 billion in loans for Intel in Arizona, where some of the funding will be used to build two new factories and modernize an existing one.

Qualcomm has approached Intel to explore a potential acquisition of the troubled chipmaker, Reuters reported earlier this month.

Once the dominant force in chipmaking, Intel ceded its manufacturing edge to rival Taiwan Semiconductor Manufacturing and failed to produce a widely desired chip for the generative artificial intelligence boom capitalized on by NVIDIA Corp and Advanced Micro Devices .

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Comments

  • Cosmograph
    09-27
    Cosmograph
    Oh 20Billion subsidy when US does is not wrong but anyone else does is... 🤔right... watch me shit anywhere and everywhere but when i do it, it's ok. However if anyone else dares dream of doing it, I will punish you and sentence you to death. 😂 
  • setia100
    09-27
    setia100
    Rome was not built in a day. Intel still has problem to get back its glorious day even it has secured large funding from the Biden government. Good talents are either left the company or being retrenched. 😨
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