Intel, U.S. To Finalize $8.5 Billion Chips Funding By Year-end

Intel and the U.S. 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 discussions.

Intel has ceded its manufacturing edge to rival Taiwan Semiconductor Manufacturing Co. and has struggled to produce a chip in demand for the generative artificial intelligence (AI) boom. I Photo: Intel

While the talks are in advanced stages, there is no guarantee the deal will be completed before the year ends. The report also noted that any takeover of all or part of Intel's business could disrupt the discussions.

In March, President Joe Biden awarded Intel nearly $20 billion in grants and loans to bolster domestic semiconductor production.

The preliminary agreement includes $8.5 billion in grants and up to $11 billion in loans, with some of the funding allocated to building two new factories and modernizing an existing one in Arizona.

Earlier this month, Reuters reported that Qualcomm had approached Intel about a potential acquisition.

Once a dominant player in chip manufacturing, Intel has since ceded its manufacturing edge to rival Taiwan Semiconductor Manufacturing Co. and has struggled to produce a chip in demand for the generative artificial intelligence (AI) boom, which has been capitalized on by Nvidia and AMD.