Wednesday, September 11th 2024
US Government Could Delay $8.5 Billion CHIPS Act Funding for Intel
The $8.5 billion in CHIPS Act assistance intended for Intel from the US government is expected to be delayed due to the company's ongoing financial struggles. According to a Bloomberg report, the Department of Commerce rejected the initial allocation request, requiring Intel to meet specific objectives and complete a comprehensive due diligence process before the funds are released.
Intel has committed to remaining engaged in discussions despite the additional requirements, though it encountered regulatory and timing challenges. The terms of the funding include $8.5 billion in direct assistance to Intel, along with $11 billion in low-cost credit, and a 25 percent tax credit worth up to $100 billion for Intel's investments in Arizona, New Mexico, Ohio, and Oregon.
Source:
Bloomberg
Intel has committed to remaining engaged in discussions despite the additional requirements, though it encountered regulatory and timing challenges. The terms of the funding include $8.5 billion in direct assistance to Intel, along with $11 billion in low-cost credit, and a 25 percent tax credit worth up to $100 billion for Intel's investments in Arizona, New Mexico, Ohio, and Oregon.
Intel said in a statement that "we are making significant progress across our US projects in Arizona, New Mexico, Ohio and Oregon, and look forward to finalizing our funding agreement soon."
"We've been working hard to address the issues," CEO Pat Gelsinger told investors at a conference last week. "Like everybody in the industry, we realize we have to operate efficiently with nimbleness, with urgency."Enacted by Congress in July 2022, the CHIPS and Science Act was designed to strengthen the US domestic semiconductor industry, with funding allocated for semiconductor R&D, domestic production, and specialized tooling equipment.
"We recognize that we are operating in one of the most cyclical, intensely competitive industries in the entire world, and that dynamics are going to shift," Mike Schmidt, who runs the Commerce Department's chips office, said in an early August interview when asked about risks to the overall program. "We'll have to be nimble in how we respond to that."
40 Comments on US Government Could Delay $8.5 Billion CHIPS Act Funding for Intel
Love it!
ARM, RISC V and even POWER needs to be ready to step up to take advantage of this “intel tragedy”
bunch of vultures really want an other corpse to pick clean
All AMD does is design chips; designs that are then shipped off 100 miles next to a competing geopolitical superpower to fabricate...
In a world where Semiconductors and AI dominance is increasingly important...
The US isn't just investing to Intel and TSMC, their is money going to Intel, TSMC, Samsung, Micron, Global Foundries, Microchip Technology, Polar Semiconductor, and BAE Systems. They all have different levels of Fab tech.
I was pretty happy to hear that things were going well for the Arizona branch a little while ago.
Here's a thought: Make the CHIPS act funding 100% contingent on a company making an equal amount of costs/salary/bonus/expense account reductions, and progress towards for all it's execs & mgmt, as well as mandatory progress towards improving energy efficiency & accomplishing strict green mfgring....WITHOUT LAYING OFF A SINGLE, LOWER-LEVEL EMPLOYEE !
Or buy shares in an IPO. If anyone says this is nationalisation - yes it is but only if the company wants that.
Intel put themselves in this position by being complacent with small incremental changes and focusing on profits in years past instead of future planning. Now they want daddy B to give them money to help them instead of selling stocks they bought back
esd.ny.gov/micron
What is not in this is that Micron are helping fund K-12 Public schools to source their employees for the next 25 years.
intel would have been fine for a long long time
now they went in to massive debt because every government of every developed nation in the world was shoving them money to build fabs in their neck of the woods so if the supply chain crashed again they would have state of the art chips.
so no thus has nothing to do with intel being in a rut, they are still making a lot of money. They aren’t making nvidia magic ai bubble money and that’s what making investors upset.
Their 60 billion building new fabs hole is what has them in trouble