Intel CEO Patrick Gelsinger speaks before President Joe Biden at the Intel Ocotillo campus in Chandler, Arizona, March 20, 2024.
Rebecca Noble | Getty Images
chip manufacturer Intel and the CHIPS Act office are close to finalizing a deal that would award the company Approximately $8 billion in grants, The Biden administration will previously release funds, according to a person familiar with the matter President-elect Trump’s inauguration.
The person said the $8 billion would be used for Intel’s factory construction work. The Commerce Department expects to finalize its ruling in the coming weeks, the person said.
Intel is also preparing to launch Chip manufacturing contract worth $3 billion For the Defense Department, the deal, announced in September, is a rare bright spot as the company works to grow its fab business. The Commerce Department declined to comment for this story. Intel did not immediately respond to a request for comment.
wall street journal It was first reported that the two sides were close to finalizing the grant.
But Intel’s woes have intensified since the funding was initially announced. new york timesThe Wall Street Journal reported on Sunday, citing four people familiar with the matter, that the government decided to reduce funding by about $500 million due to uncertainty about Intel’s ability to execute on investment commitments and Intel’s changing technology roadmap and customer needs.
United States Grant British Semiconductor one $6.6 billion allocated earlier this monthraising investor expectations that Intel will soon receive cash financing. Intel benefited from CHIPS Act tax breaks but has yet to receive a cash bonus, something Intel CEO Pat Gelsinger expressed dissatisfaction with.
“We’re frustrated that we’re not moving faster,” Kissinger told CNBC in October, referring to CHIPS Act funding. “They’re overly bureaucratic in the process. We’re eager to see these completed.”
U.S. House Speaker Mike Johnson previously said he might consider repealing the bipartisan CHIPS Act, but he later walked back those remarks. The Biden administration and appropriators touted the legislation as a job-creation machine.
Intel’s woes have intensified significantly this year. company Posted losses of nearly $17 billion Chief Executive Pat Gelsinger’s ambitious global plans were scaled back last quarter.
Intel announced earlier this year that it would Cut 15,000 jobs through layoffs and voluntary buyouts. The company has taken steps to make it easier to separate its foundry business from its legacy business and has been working with Active defense consultant People familiar with the matter previously said a broader strategy review would also be conducted. Intel is also seeking to raise cash by taking a minority stake in Altera’s business. CNBC previously reported that, The search for interested suitors has been ongoing for weeks.
It may also be eyeing a once unthinkable prospect: a potential takeover bid from a rising company Qualcommwhose market value now dwarfs Intel’s.
