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.
58 Comments on Intel's Silver Lining is $8.5 Billion CHIPS Act Funding, Possibly by the End of the Year
I believe that I mentioned that and to repeat, I havent heard neither of the other companies with foundries in the US of receiving a penny.
So I dont understand your post.
Intels 18a node is a best case scenario measurement, I fully agree it will be twice what TSMC has in production but we are nearing the pointless numbers where power delivery and packaging, ability to stack chips is the only path forward.
Having the chiplet on one side of the silicon with power delivery and cache and the CPU cores on the other side and packaging it will be the next big thing. Stacking more cache on is the next.
Source:
www.google.com/url?sa=i&url=https%3A%2F%2Fclausaasholm.substack.com%2Fp%2Fa-billion-here-and-a-billion-there&psig=AOvVaw1FsxU-P1XoPTjiel2wQKqe&ust=1727554074989000&source=images&cd=vfe&opi=89978449&ved=0CBcQjhxqFwoTCLCylsn244gDFQAAAAAdAAAAABAE
They're all getting money -- everyone that manufactures locally. TSMC is getting 6.6 billion for Arizona.
I feel like my post, "Government GIVING money to FAILING companies" isn't being taken as an entire statement. I keep reading other companies get money and AMD has failed at times. Both conditions must be met.
But that's fine, borrow more money from the future of our kids and grandkids as you run up the debt to feed the wallets of these fat cats. No one will notice.
Why would you fund a company that doesn't make anything. They can design all they want. If they can't make/fabricate it due to Geo-political issues, there's no value.
I have no doubt that given the current political climate, if AMD still had fabs, they would be getting their share just like TSMC, Intel, et al.
Technically GloFlo is on the list too, so you could argue that AMD is getting money too. :laugh:
packagingeurope.com/news/european-commission-permits-first-of-its-kind-microchip-manufacturing-plant/11764.article
how ever much of todays security is done in data centres where they process and store huge amounts of captured video and other data like credit card transactions.
thats where they need the newest and best technology and also where the competition has taken the lead.
they also don’t like it that he competition might have a back door in the nations infrastructure dauhua camera systems huawei routers and transceivers…
all of those things are made on the latest and greatest nodes
which as a domestic player only intel is capable of making.
also keep in mind that these small nodes are very very hard to manufacture.
samsung which basically is half of South Korea struggles with it whiles getting hundreds of billions of won to prop it up.
tsmc that is lucky it’s struggling to advance while at the top while getting infinit money from both intel nvidia and Apple. probably some sweetheart deals from their government to and of-course us chips act billions
For example, the technology to press two chips together and make them stick without glue or solder is... well, it sounds almost like cold fusion. But that's what makes 3D V-cache work.
Intel fu**ed up, that's all, but at worst they will go AMD route and will survive easily. The Intel foundries are a bigger problem and a very costly one.
Yeah, China is investing heavily into their semiconductor industry. They would be stupid, If they didn't do that and It's not like they are the only ones investing heavily in this industry.
While there is no real proof one way or another I don't expect company building fabs right now would be doing as many or as quickly with out the world wide level of government money many of these companies are receiving. And this is on top of the standard allotment that governments in Asia and elsewhere pay out to "stay ahead".Right I don't understand the mentality that is being shown here. It's ok if West Taiwan, S Korea, and Taiwan give hand outs but it's not OK for the US or Europe? Maybe it's OK only if Intel doesn't get that money.
I honestly don't care If US will support It or not, because I am not an American, but I care that EU instead of building It's own semiconductor foundry is paying foreign companies to build their own here.
Either need to get real, or learn to read. Poverty to me, means homeless, no food, no internet, no water.
Not money for your computer parts.