US Govt to Approve $8.5B Funding for Intel by Year-End

Intel Corp (INTC.O) is in advanced talks with the US government to secure $8.5 billion in direct funding by 2024, aiming to boost domestic semiconductor production. The deal, expected to be finalized soon, comes as Intel seeks to regain ground in the global market.

Although negotiations are progressing, there is no guarantee of the deal’s completion by year-end, especially since potential disruptions may arise from any acquisition of Intel or its business.

Earlier this year, President Joe Biden granted Intel nearly $20 billion in grants and loans to enhance domestic chip production, including $8.5 billion in grants for operations in Arizona. This funding will support the construction of two new factories and the upgrade of an existing facility.

Furthermore, Qualcomm has shown interest in acquiring Intel, which currently faces tough competition in the semiconductor industry. Previously dominant, Intel has lost ground to competitors like TSMC, Nvidia, and AMD.