Intel has now approached US Commerce Secretary Gina Raimondo to attain the incentives pledged by the Biden administration and regain investors' trust.
Intel Raises Concerns Over The Inclination of US Tech Companies Towards TSMC, Urges The Administration To Step In
Team Blue is currently in financial turmoil. and getting out of it may not seem as easy as it sounds. The firm is experiencing the worst situation in its "56-year" history, and they are now taking "emergency" steps to get out of this mess, which includes selling off its assets and halting the development of large-scale projects. However, Intel did expect incentives from the CHIPS Act as an immediate relief. Still, the situation became worse when the Biden administration showed resentment toward granting additional funds, claiming that the company hadn't managed to fulfill expectations.
CNBC reports that Intel's CEO Pat Gelsinger has held a meeting with Commerce Secretary Gina Raimondo, expressing the firm's frustration over how the US government isn't collaborating in desperate times. Gelsinger also showed concerns over how major tech companies are looking to do business with TSMC rather than IFS, indirectly urging that this should be stopped and that companies like Apple and NVIDIA should be directed towards cooperating with Intel rather than the Taiwan giant.
In response, Raimondo has reportedly talked up with investors, highlighting the importance of Intel for the sustainability of global semiconductor markets. The Commerce Secretary leveraged the fact that TSMC is in a complex geopolitical position, and if the China-Taiwan issue escalates even higher, companies will have trouble accessing TSMC's production services, which is why, in the longer term, opting for Intel will be more beneficial.
Intel is expected to receive $8.5 billion in grants and $11 billion in loans under the CHIPS Act, but as discussed, the incentive won't be provided to the firm immediately, given that they haven't met expectations. Apart from getting aid from the government, Intel is likely selling some parts of its foundry division and halting the construction of its $30 billion German facility. The company is in talks with multiple financial advisors to get out of this mess, and we can expect decisive steps to be taken in the next shareholders' meeting.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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