Intel Corp. is reportedly close to securing 8.5 billion dollars in direct funding from the U.S. government, with discussions expected to be finalised before the end of 2024, according to a report by the Financial Times. However, the outcome is not guaranteed. Sources suggest that any potential takeover or acquisition of Intel could jeopardise the negotiations.
Earlier this year, U.S. President Joe Biden announced a 20 billion dollars aid package in grants and loans to support Intel's domestic chip manufacturing efforts. The preliminary acreement for the latest funding includes 8.5 billion dollars in grants and up to 11 billion dollars in loans, which will help Intel build and upgrade factories in Arizona.
Despite receiving substantial government support, Intel has struggled in the competitive chip industry. Once a dominant player, it has lost ground to Taiwan Semiconductor Manufacturing Co. (TSMC) and has missed out on the Al chip surge led by companies like Nvidia and AMD. Recently, Qualcomm expressed interest in acquiring Intel, adding uncertainty to the company's future.
Intel and the U.S. Department of Commerce have not yet commented on these developments.
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