As you know, Intel is going through a rough patch. Recently, the company announced the redundancy of a large number of employees in order to limit its losses, but that’s not all. In fact, there are rumours of a split between the Blues and Intel Foundry. In short, things are not at their best. What’s more, as a result, the US government has decided to delay payment of its CHIPS and Science Act grants. We learned the news from Bloomberg.
Intel: US aid delayed!
Against this gloomy economic backdrop, the US government decided to suspend the aid granted to Intel. We now learn that the Department of Commerce has rejected the company’s initial application for aid. In order to be granted the aid in question, the brand must meet certain objectives, such as, we assume, returning to profitability. It’s hard to imagine the US government granting large amounts of funding to companies in difficulty, this isn’t France ?.
As a reminder, under the CHIPS and Science Act, the Blues would benefit from $8.5 billion in cash, plus $11 billion in low-rate credit and a tax credit of 25% up to $100 billion. The aim is to encourage the company to open new production sites in Arizona, New Mexico, Ohio and Oregon.
Ultimately, the US government wants to relocate a semiconductor production chain on its soil to ensure its independence from Asian countries where there is strong tension with China. That way, in the event of a conflict, they’re covered.