Semafor news website reports that American politicians are growing concerned over Intel’s financial troubles and discussing potential aid to support the American semiconductor company. Intel received a $8.5 billion funding boost from the CHIPS Act to promote chip manufacturing within the United States. However, there have been delays in the disbursement of funds, leaving Intel still waiting for the much-needed financial support. The reasons for these delays remain unclear at this point.
According to Semafor, senior officials at the U.S. Department of Commerce and some politicians, such as Senator Mark Warner, who championed the CHIPS Act, are in talks to explore additional assistance for Intel. This aid is not expected to involve direct government intervention, similar to the government’s stakeholdings in automakers during the 2008 economic crisis but could involve support for collaboration with other chip companies like AMD or Marvell.
Intel’s Q3 2024 financial results were better than expected, despite losses from restructuring, giving Intel some breathing room to strategize further. The company confirms that the production process for Intel 18A chips is progressing as planned.
Source: Semafor
TLDR: American politicians are considering further assistance for Intel amidst concerns over the semiconductor company’s financial issues, despite receiving funding from the CHIPS Act. Intel’s Q3 2024 financial performance exceeded expectations, providing some relief amid ongoing uncertainties.
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