Intel and the US government are close to finalizing $8.5 billion in direct funding for the chipmaker, according to a report by the Financial Times.
The deal, expected to be completed by year’s end, remains uncertain as delays could push the finalization into 2024. Any potential takeover of Intel could also affect the talks.
President Joe Biden gave Intel nearly $20 billion in financial support in March to boost domestic semiconductor production. The $8.5 billion in grants and up to $11 billion in loans will help build two new factories and upgrade an existing one in Arizona.
Once a chip manufacturing leader, Intel has struggled to compete with Taiwan Semiconductor Manufacturing Co. and missed out on the AI chip boom led by Nvidia and AMD. Recently, Qualcomm expressed interest in acquiring Intel, further complicating the company’s position.
