Intel and US set to finalize $8.5 billion chip funding deal by 2024 end: Report
California/IBNS: Intel and the US government are expected to finalize $8.5 billion in direct funding for the chipmaker by the end of the year, the Financial Times reported, citing sources familiar with the matter.
According to the report, although the discussions are in advanced stages, there is no certainty that the deal will be concluded before the close of 2024.
The report also noted that any potential acquisition of Intel or parts of its business could complicate the negotiations.
Neither Intel nor the US Department of Commerce responded to Reuters' requests for comment.
In March, US President Joe Biden awarded Intel close to $20 billion in grants and loans to boost domestic semiconductor production.
The initial agreement includes $8.5 billion in grants and up to $11 billion in loans for projects in Arizona, where Intel plans to use the funds to build two new factories and upgrade an existing one.
Earlier this month, Reuters reported that Qualcomm had approached Intel to explore a potential acquisition of the struggling chipmaker.
Once a leader in the semiconductor industry, Intel has lost its competitive edge to Taiwan Semiconductor Manufacturing Co. (TSMC) and has lagged in producing chips for the growing generative artificial intelligence (AI) market, where Nvidia and AMD have taken the lead.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
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