As you know, Intel is currently going through a difficult period. Indeed, the second quarter of 2024 turned out to be particularly catastrophic for the blues. This has been reflected in the company ‘s share price. However, the company’s CEO, Patt Gelsinger, points out that the current situation is partly due to the US government!
Intel: financial aid slow in coming!
Like much of the world, the United States is dependent on Asia for semiconductor production. A situation which, in the event of conflict between China and Taiwan, could jeopardize global chip production. To ensure its sovereignty in this field, the Americans are seeking to relocate production on their soil, hence the creation of the CHIPS & Science Act, a government aid scheme to support this effort.
It is within this framework that the Blue’s have invested heavily in production sites in the United States. We’re talking about $30 billion here. In return, the Biden government was to support the company, as we told you here, to the tune of $8.5 billion. However, this aid has still not arrived, and there’s no announced date for payment.
As a reminder, the Blue’s investment was focused on the FAB 52 and 62 in Arizona, as well as in New Mexico for a packaging plant and in Ohio for a new production site.
In any case, this delay in payment has forced Intel to restructure, abandoning sectors that are less or not at all profitable, and shedding part of its payroll. Remember that the CHIPS & Science Act was created two years ago now…
