Friday, September 27th 2024
Intel's Silver Lining is $8.5 Billion CHIPS Act Funding, Possibly by the End of the Year
Intel's recent financial woes have brought the company into severe cost-cutting measures, including job cuts and project delays. However, a silver lining remains—Intel is reportedly in the final stages of securing $8.5 billion in direct funding from the US government under the CHIPS Act, delivered by the end of the year. The potential financing comes at a crucial time for Intel, which has been grappling with financial challenges. The company reported a $1.6 billion loss in the second quarter of 2024, leading to short-term setbacks. However, thanks to sources close to the Financial Times, we learn that Intel's funding target will represent the CHIPS Act's largest share, leading to a massive boost to US-based semiconductor manufacturing.
Looking ahead, the potential CHIPS Act funding could serve as a catalyst for Intel's resurgence, reassuring both investors and customers about the company's future. A key element of Intel's recovery strategy lies in the ramp-up of production for its advanced 18A node, which should become the primary revenue driver for its foundry unit. This advancement, coupled with the anticipated government backing, positions Intel to potentially capture market share from established players like TSMC and Samsung. The company has already secured high-profile customers such as Amazon and (allegedly) Broadcom, hinting at its growing appeal in the foundry space. Moreover, Intel's enhanced domestic manufacturing capabilities align well with potential US government mandates for companies like NVIDIA and Apple to produce processors locally, a consideration driven by escalating geopolitical tensions.
Source:
Financial Times
Looking ahead, the potential CHIPS Act funding could serve as a catalyst for Intel's resurgence, reassuring both investors and customers about the company's future. A key element of Intel's recovery strategy lies in the ramp-up of production for its advanced 18A node, which should become the primary revenue driver for its foundry unit. This advancement, coupled with the anticipated government backing, positions Intel to potentially capture market share from established players like TSMC and Samsung. The company has already secured high-profile customers such as Amazon and (allegedly) Broadcom, hinting at its growing appeal in the foundry space. Moreover, Intel's enhanced domestic manufacturing capabilities align well with potential US government mandates for companies like NVIDIA and Apple to produce processors locally, a consideration driven by escalating geopolitical tensions.
20 Comments on Intel's Silver Lining is $8.5 Billion CHIPS Act Funding, Possibly by the End of the Year
The bottom line is their main products aren't competitive anymore. Unless they have another breakthrough like Core in 2006, they're doomed to decline no matter how much money the government bungs at them.
Here's $8.5 bil for the Chips Act. And here's another $3 bil for um... just because. :rolleyes: I wish I had friends like the top dogs at Intel do.
a bit more than the interest on old debt it has to pay this year
unlike bombs intel and the products they produce will generate quite a bit of tax income in the future.
bombs tend to ruin things that generate tax
www.techpowerup.com/327036/zhaoxins-kx-7000-8-core-processor-tested-in-detail-bested-by-7-year-old-core-i3
I think the last numbers I saw was Big Fund pumping close to $60BN A YEAR into the chinese chipmakers.
Also, regardless of what you think, electronics are a key part of the military industry. The US Govt. funding related industries is par for the course.
Stuff happens.
Intel sell chips at below the price they need to develop future fabs (hence the insane losses their fabs have reported). The government is going to foot the bill for it. But mainly Intel will profit from it. For DoD purposes Samsung and TSMC fabs in the US are just as good, if not better.
Priorities..