News reports that the US government plans to cut Intel's $8.5 billion chip subsidies
According to media reports, informed sources have revealed that the US government plans to reduce Intel's $8.5 billion federal chip subsidy to less than $8 billion, taking into account Intel's previous $3 billion chip manufacturing contract with the US Department of Defense.
This spring, the US government announced that it will provide nearly $20 billion in grants and loans to Intel to promote the company's semiconductor chip production in the United States, which is the largest subsidy from the US government for cutting-edge chip production. At that time, a preliminary agreement was announced to provide Intel's factory in Arizona, USA with $8.5 billion in subsidies and up to $11 billion in loans, some of which would be used to build two new factories and modernize an existing factory.
This expenditure is part of the Chip Act, which aims to provide $52.7 billion in funding to increase US semiconductor production, including $39 billion in semiconductor production subsidies and $11 billion in research and development subsidies.
Previously, Intel CEO Pat Gelsinger expressed "frustration" with the US Chip Act, stating that the Biden administration has delayed the disbursement of promised "emergency funds". Kissinger stated that during the company's "worst" financial period, the Biden administration had not yet disbursed the promised $8.5 billion in subsidy funds. In addition, Intel is expected to receive $11 billion in loans and up to $25 billion in tax credits, but this financing plan has not yet been approved, which has put Intel in a difficult situation, especially during a period of deteriorating economic conditions. There are rumors that the company will sell all its assets to companies such as Arm and Qualcomm.
This expenditure is part of the Chip Act, which aims to provide $52.7 billion in funding to increase US semiconductor production, including $39 billion in semiconductor production subsidies and $11 billion in research and development subsidies.
Previously, Intel CEO Pat Gelsinger expressed "frustration" with the US Chip Act, stating that the Biden administration has delayed the disbursement of promised "emergency funds". Kissinger stated that during the company's "worst" financial period, the Biden administration had not yet disbursed the promised $8.5 billion in subsidy funds. In addition, Intel is expected to receive $11 billion in loans and up to $25 billion in tax credits, but this financing plan has not yet been approved, which has put Intel in a difficult situation, especially during a period of deteriorating economic conditions. There are rumors that the company will sell all its assets to companies such as Arm and Qualcomm.