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Tough times for Intel
Things are going haywire at Intel. First the chip manufacturer had to struggle with stability problems with some of its processors, then they said important events from, gave plans for the Laying off thousands of employees known, paused the plans for the Construction of a planned factory near Magdeburg and stomped one planned CPU generation completely.
US government subsidy package
A light at the end of the tunnel could now become visible in the form of a huge financial injection from the American state. Because like that Financial Times According to reports, Intel and the US government are close to reaching an agreement on financing the chip company worth $8.5 billion, which was announced in March.
The sum is part of the Biden administration’s $39 billion subsidy package to boost national semiconductor manufacturing. Intel would be the recipient of the largest share of the program with the aforementioned amount. However, this could only mean a little more than that Losses of seven billion dollars that the chip manufacturer made in its foundry area last year.
The aim is to conclude negotiations as soon as possible
Since the government wants to get everything in order before the elections on November 5th, Intel could probably have the money available soon. The current rumors about alleged offers for a (partial) takeover by corporations like Qualcomm, ARM or Apollo Global Management However, it is said that these should not be conducive to the negotiations and could even endanger them.
If an agreement is reached, $11 billion in additional loans are also possible. Intel had already received $3.5 billion from the government to produce chips for the American military and secret services.
In addition to Intel, other companies such as the Taiwanese global market leader TSMC and Samsung also receive grants from the subsidy package. The money comes from the so-called Chips Act, which is intended to promote the American semiconductor industry. For the US government, it may also be important for reasons of “national security” that Intel survives in the long term.
- US government plans subsidy for Intel worth 8.5 billion US dollars
- Intel struggled with losses and implemented cost-cutting measures
- Cash injection is part of a $39 billion program
- The aim of the program: to promote national semiconductor production
- Intel could be the biggest recipient of the subsidy package
- Another $11 billion in loans for Intel could follow
- Rumors about partial takeovers could affect negotiations
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