News Intel’s CHIPS Act fund delayed by officials — Washington reportedly wants more information before disbursing billions of dollars

[Admin]

Intel's CHIPS Act funds are reportedly being delayed as Washington requests a more concrete manufacturing roadmap from the company.

Intel’s CHIPS Act fund delayed by officials — Washington reportedly wants more information before disbursing billions of dollars : Read more

 

[vanadiel007]

They are not going to provide Billions of $$$ without knowing what parts of the Company are going to be owned by whom.

 

[TheSecondPower]

So the CHIPS money is going to Korean companies Samsung and SK Hynix and Taiwanese company TSMC, but not to US company Intel.

 

[rtoaht]

So the CHIPS money is going to Korean companies Samsung and SK Hynix and Taiwanese company TSMC, but not to US company Intel.

TSMC receives subsidies from Taiwan, Japan, US, and Chinese governments. Intel just gets promises. Either the TSMC subsidies should stop, or Intel should be given an equal playing field.

 

[DS426]

TSMC receives subsidies from Taiwan, Japan, US, and Chinese governments. Intel just gets promises. Either the TSMC subsidies should stop, or Intel should be given an equal playing field.

I'm pretty sure Intel is pretty much on an equal playing field. If anything, they were over-guaranteed benefits; I agree with the author that CHIPS Act funds should be better distributed, namely smaller amounts to those massive incumbents like TSMC and Intel. Intel also over-invested and really only have themselves to blame for the hot water they are in. Indeed Uncle Sam has the right and should require Intel and anyone else to prove they're progressing.

Let's be honest: it has pretty bad optics when Intel lays off 15% of their workforce (the opposite of investing in American jobs) and yet receives billions in raw cash, loans, and tax breaks. Maybe there is some delay due to politics, but hard terms of the contract will be surely met and some point and therefore require payment by law via such legal-binding contractual agreement.

Is that agreement public, BTW? If so, maybe we could take a gander at it and surmise where Intel might still be behind on their performance requirements.

 

[TheSecondPower]

Is that agreement public, BTW? If so, maybe we could take a gander at it and surmise where Intel might still be behind on their performance requirements.

Usually where federal dollars go is subject to FOIA, so it could be made public by any citizen's request if it isn't already. But there might be an exception to details that could be secret to a non-government recipient.

 

[Amdlova]

They want Intel focus on military hardware... Amd don't do that kind of work.
Working with military can Damage Reputation Intel meltdown bomb.

 

[dalek1234]

Another day, another bad news from Intel. I'm running out of popcorn!

 

[MacZ24]

Intel is the only US foundry that does edge nodes.

The US government is not going to let it go bankrupt and be dismantled. That is not geopoliticaly possible.

If the US governement hints otherwise, it is lying, as always

 

[watzupken]

I'm pretty sure Intel is pretty much on an equal playing field. If anything, they were over-guaranteed benefits; I agree with the author that CHIPS Act funds should be better distributed, namely smaller amounts to those massive incumbents like TSMC and Intel. Intel also over-invested and really only have themselves to blame for the hot water they are in. Indeed Uncle Sam has the right and should require Intel and anyone else to prove they're progressing.

Let's be honest: it has pretty bad optics when Intel lays off 15% of their workforce (the opposite of investing in American jobs) and yet receives billions in raw cash, loans, and tax breaks. Maybe there is some delay due to politics, but hard terms of the contract will be surely met and some point and therefore require payment by law via such legal-binding contractual agreement.

Is that agreement public, BTW? If so, maybe we could take a gander at it and surmise where Intel might still be behind on their performance requirements.

I think Intel have more than an equal playing field in the US. I do think they were over guaranteed benefits only because Intel over promised on what they can do. To evidence, just go through all the Intel fab expansion news in the past 2 years where they turn 200% aggressive with expansion in the West. At one point, I was thinking if Intel have infinite resources to expand this aggressively even with some government funding. So at this point, I am not surprise at this happening. I do think at the end of the day, the US government will not let Intel fail since they are the ONLY western technology company with advance foundry, regardless of questionable yield.

 

[JRStern]

So they won't throw them a life preserver until they prove they don't need it?

 

[rtoaht]

I'm pretty sure Intel is pretty much on an equal playing field.

How is that a response to my comment about "TSMC receives subsidies from Taiwan, Japan, US, and Chinese governments... " There is absolutely zero CHIPS act fund being distributed. On the other hand, TSMC have been receiving billions of dollars from Asian governments. Recently the Japanese government is promised to pay almost half of the fab expansion cost after already paying 40% of the initial fab cost. Did Intel get 40-50% of the cost covered for their existing Oregon fabs?

TSMC is getting almost half of their costs covered by government entities. At the same time, they are also getting promises of those to continue while Intel is getting promises only. How is that equal?