Intel Has Now Reportedly Tapped $8.5 Billion In New Funding Over The Past Week

With Intel's market capitalization recently falling below that of Starbucks, the beleaguered chipmaker is now attracting phenomenal interest from bargain hunters, premised on the belief that the US government will not allow such a strategically important entity to go bust. As an illustration of this evolving phenomenon, consider that Intel has reportedly tapped $8.5 billion in new funding just over the past couple of days.

As we noted on the 16th of September, Intel has now officially received the authorization for $3.5 billion in direct funding under the Secure Enclave program of the Department of Defense, which aims to incentivize the manufacturing of advanced semiconductors for strategic defense needs. This is in addition to the $8.5 billion in grants and $11 billion in loans that Intel is slated to receive under the CHIPS Act.

Well, barely a week later, Bloomberg is now out with the scoop that the prominent asset management firm, Apollo Global, which manages assets worth nearly $350 billion, is willing to make an "equity-like" investment of up to $5 billion in Intel in what constitutes a phenomenal vote of confidence in the chipmaker's recently announced turnaround strategy.

For the benefit of those who might not be aware, Intel is now planning to spin out its chip manufacturing arm as a separate subsidiary, which will create some much-needed distance between Intel's chip design and manufacturing competencies and can play an important role in attracting additional customers.

In addition to other steps that Intel has already announced to deliver $10 billion in cost savings, the company has now halted the construction work in its factories in Poland and Germany for two years and delayed the operationalization of a new advanced packaging factory in Malaysia by aligning its boot up with "market conditions."

Additionally, Intel has already executed around half of its announced layoff plans, which will see ~15,000 employees exit the firm by the close of 2024. The company also plans to "reduce or exit about two-thirds of our real estate globally by the end of the year." Moreover, the chipmaker intends to publicly list its FPGA arm Altera.

Of course, Broadcom and Amazon are currently the anchor customers for Intel's new 18A process, which is compatible with TSMC's 2nm process and is expected to enter the commercial phase in 2025.

Meanwhile, as we reported late on Friday, Qualcomm has reportedly approached Intel with a takeover offer. While the talks remain exploratory for now, any deal is sure to have monumental ramifications for the industry at large.

Nonetheless, do note that with each additional significant funding that Intel taps, the prospects of a takeover deal with Qualcomm diminish. After all, Qualcomm is not exactly flushed with cash and Intel's 15 fabs alone are worth around $150 billion. The fact that Intel's stock is currently trading at a discount to this valuation metric only makes the deal sweeter for Qualcomm. Yet, with each additional funding round, Intel opens for itself additional avenues for implementing a comprehensive overhaul.

About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.

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