News Intel CEO complains 'this is taking too long' after investing $30B but receiving zero CHIPS Act funding

[Admin]

Intel has invested over $30 billion in new fabs after the CHIPS Act was enacted and received zero funding from the government so far.

Intel CEO complains 'this is taking too long' after investing $30B but receiving zero CHIPS Act funding : Read more

 

[rluker5]

Going to better nodes costs a lot of money. Investing over 3 billion a quarter on this really hurts their bottom line but will hopefully help in the long run. Pretty tough to keep profitable with that big of a negative and that's probably why they are cutting costs so much.

 

[dalek1234]

CHIPS Act funding is tied to Intel's performance, and the way Inter is performing currently, I wouldn't be surprised if they don't see any of the cash. Would you want to give billions of taxpayers' money to Intel, only to see Intel burn through it all, without expected results, and then collapse as a company? Intel needs to show that it has a bright future, but with the 13th/14th and now the Arrow Lake fiascos, Intel is showing us just the opposite. Pat is just being whiny.

 

[hotaru251]

I have invested $30 billion in U.S. manufacturing and we have seen $0 from the CHIPS grants.

funny how its "i" invested but "we" received.

Also Intel should know how long stuff takes to go through the needed stuff in gov.
Just getting permits for something at times can take yrs.

 

[EzzyB]

CHIPS Act funding is tied to Intel's performance, and the way Inter is performing currently, I wouldn't be surprised if they don't see any of the cash. Would you want to give billions of taxpayers' money to Intel, only to see Intel burn through it all, without expected results, and then collapse as a company? Intel needs to show that it has a bright future, but with the 13th/14th and now the Arrow Lake fiascos, Intel is showing us just the opposite. Pat is just being a whiny b!7ch

There's an easy assumption that this is just a handout. But, the US government wants something in return. It wants production of these items it deems critical to the US moved out of an area (Taiwan and South Korea) where a hostile neighbor, China and North Korea, have, as a matter or public policy, hostile intent.

Let's face it, Russia's assumption that Ukraine is, in fact, part of Russia is simply made up as an excuse to invade. China truly believes Taiwan is part of China and both Koreas are called Korea for a reason.

The US government is NOT willing to pay for all of the costs associated for that. So, I don't think it's a stretch for Intel to claim that they have held up their end of the bargain.

At the very least we haven't heard of an actual reason from the government as to why the promised funding hasn't been provided. If there was a shortfall on Intel's part one would think they would at least give a reason.

 

[vanadiel007]

Always the same story. It's a free market until a large Company fails, and then the "programs" start to give them money to survive.

Let the free market rule, and if that means they go under they go under.

 

[rluker5]

Always the same story. It's a free market until a large Company fails, and then the "programs" start to give them money to survive.

Let the free market rule, and if that means they go under they go under.

Except in the case of TSMC where the Taiwan gov got it started and is still the largest shareholder. Remove the influence of the Taiwan gov and TSMC would not even exist. Maybe it isn't totally a free market with chip fabs. The cost and importance isn't as much as highways, electricity or water, but the costs are higher than most companies can shoulder and the importance is also quite high. Probably higher than Aerospace, for example.

 

[JRStern]

While Intel has been granted some $8.5 billion in direct investment, up to $11 billion in loans, and a 25% investment tax credit of up to $100 billion,

Is that investment tax credit counted in the $200b slush fund part of Chips Act?
Or even the loans - which should at least be counted at the IRR/NPV rates?
I was actually not aware of either of those element when the Act was being discussed.

I've been saying the $8.5b is just too small a number, but the combination of all three is significantly greater.

 

[ezst036]

It turns my stomach seeing these wealthy fat cats with their hands out for our money.

I know CHIPS is popular with many around here and that's exactly why corporate welfare never dies. Someone is a fan of it somewhere, and you just have to find the special interest crowd supporting it to keep the gravy train running.

CHOO CHOO! CHOO CHOO!

 

[_Shatta_AD_]

All these chip companies should’ve stayed out of the US in the first place and invest elsewhere. This fake Gold rush will cause hardship for anyone who believes they’ll get easy money to cover their investment. Imagine $30B from Intel alone out of the initial $50B pie and Intel isn’t done yet. You really think the US gov’t is rich enough to subsidize everyone(Samsung, Intel, TSMC, Apple, Global Foundries, Micron, SK Hynix, Kioxia…) even partially?? Afterwards it’ll just drive up consumer pricing by multiple factors cause fab won’t absorb that cost and no one can afford to buy those products. Simply cannot compete with chips made outside the US even with fab hikes and increased shipping included. Then the US get red eyed and artificially drive up prices with tariffs so they force consumers to buy expensive US products as if everyday living cost aren’t high enough. This is all bound to fail.

 

[Ferlucio]

Obviously government funding will go to the pockets of government. It just makes sense.

 

[gggplaya]

There's an easy assumption that this is just a handout. But, the US government wants something in return. It wants production of these items it deems critical to the US moved out of an area (Taiwan and South Korea) where a hostile neighbor, China and North Korea, have, as a matter or public policy, hostile intent.

Let's face it, Russia's assumption that Ukraine is, in fact, part of Russia is simply made up as an excuse to invade. China truly believes Taiwan is part of China and both Koreas are called Korea for a reason.

Taiwan being invaded by China is a real problem because China is a real superpower.

But at this point, I don't think anyone is worried about North Korea. They're a joke aside from nukes supplied by Russia, they have no power compared to South Korea. South Korea's jets are far more advanced, so are their tanks and artillery. Heck, South Korea could probably just take them with the trainer jets (KAI T-50) because North Korea's jets are so old and 400mph slower than the T-50 which is just a training jet but capable of holding missiles and a gun. Also all adult males have mandatory service so everyone is trained at this point. There's no way North Korea could take them in a fight, especially with the U.S. supplying weapons to South Korea, and Russia/China supplying weapons to North Korea. North Korea can't even keep their electrical grid up for 24 hours straight. They're in no shape to fight any war.

I'd say Samsung, SK Hynix are safe. But I'd definitely worry about supply from TSMC in the future should there be an invasion.

 

[ekio]

Boohooo we are such losers, we need the money from the taxpayers to continue our scam.

Will the government ask to get the profit's money from them, in exchange for the money they grabbed from us ???
Does the government at least get shares in exchange for the huge money injection they get ???

 

[joeer77]

Another whiny article about Pat. Stop the corporate welfare model. My tax money belongs with me. USA has 35 trillion in national debt and growing. It's about to get real tomorrow.

Keep our alliance with Taiwan strong. That is better national defense model.

 

[vanadiel007]

I would only agree with this if a Company never outsourced anything outside of North America.
If they outsourced and now want to come back, though luck pay for it yourself.

 

[kep55]

Intel has invested over $30 billion in new fabs after the CHIPS Act was enacted and received zero funding from the government so far.

Intel CEO complains 'this is taking too long' after investing $30B but receiving zero CHIPS Act funding : Read more

Intel pulled down over $7 BILLION in cash for the first nine months of 2024. All I can say about Intel not getting any CHIPS money is BOO-HOO-HOO.

 

[joeer77]

Stop giving my tax money to these guys!

https://www.crn.com/slide-shows/com...-highly-compensated-execs-pat-gelsinger-leads

 

[LookHereBub]

Always the same story. It's a free market until a large Company fails, and then the "programs" start to give them money to survive.

Let the free market rule, and if that means they go under they go under.

Tell you don't know what you are talking about without telling me you don't know what you are talking about. Thanks.

 

[Nyara]

CHIPS Act funding is tied to Intel's performance, and the way Inter is performing currently, I wouldn't be surprised if they don't see any of the cash. Would you want to give billions of taxpayers' money to Intel, only to see Intel burn through it all, without expected results, and then collapse as a company? Intel needs to show that it has a bright future, but with the 13th/14th and now the Arrow Lake fiascos, Intel is showing us just the opposite. Pat is just being whiny.

The performance has been solid in terms of revenue and expenses. The government is just looking too much at its stock performance, which is low for reasons that are different from the long-term profitability outlook of the company itself.

Now, if CHIPS is a good idea or not, debatable, but the government already signed the grant, so they should follow through it when it is the correct time over giving it when it is too late. The money is needed now for 10 High-NA EUV machines more now for 2025 mass production, and it will be a lot more useless if given in say 2027 instead.

 

[JTWrenn]

The truth is manufacturing in the USA is likely a pipe dream because of costs of labor and other issues. We should be turning south america into our new manufacturing hub. Globalization isn't bad...sing country outsourcing is. We should have plants all over the Americas to tie local countries to us and take advantage of lower cost labor. There are so many other options but the political incentives of claiming a return of manufacturing are making us idiots. We just need to move it to safer areas and far away from China. That would solve most of this, and give us extra control of foreign political agendas...but instead we pander and waste money.

Still better than reliance on Taiwan, but we should be doing more in the rest of the Americas.

 

[Pierce2623]

I mean Pat, you probably should’ve made sure you could monetize Intel 4/3 instead of developing a full generation of nodes and just scrapping them. I guarantee that on Intel 4 they would’ve had more performance but they would’ve probably still had crazy high power usage as Intel nodes have always been skewed further towards performance than TSMC. Arrow Lake could probably at least claim the performance crown and they wouldn’t be hemorrhaging money on unused nodes while hemorrhaging more money to be able to get in front of longtime customers at TSMC and get enough wafer supply for the scale they need.

 

[rluker5]

The truth is manufacturing in the USA is likely a pipe dream because of costs of labor and other issues. We should be turning south america into our new manufacturing hub. Globalization isn't bad...sing country outsourcing is. We should have plants all over the Americas to tie local countries to us and take advantage of lower cost labor. There are so many other options but the political incentives of claiming a return of manufacturing are making us idiots. We just need to move it to safer areas and far away from China. That would solve most of this, and give us extra control of foreign political agendas...but instead we pander and waste money.

Still better than reliance on Taiwan, but we should be doing more in the rest of the Americas.

I work in chemical manufacturing in the United States. Make a decent hourly wage and it isn't uncommon for me to make $100k of product in a day. The cost of my time is negligible compared to that.

Those ASML machines are not valuable for that many years and the expense of the setup and materials to use them and make chips cost even more. You divide the factory price by the useful life and add in the material costs and amount of money needed per work hour is huge.

You need to get these labor costs in perspective. Compared to the other costs in a fab they are meaningless. One day of downtime because of infrastructure issues might be worth a year in labor cost savings.

Not that I have any problem with South America being a preferred continent for outsourcing. The world would be a better place if their stereotypical cultural values were more widespread. But I don't think there is any net financial benefit for Intel to outsource manufacturing there.

 

[bluvg]

Lots of overly-simplistic, short-term-oriented armchair comments here. Recent history has clearly shown the critical US national security issues posed by various supply chain risks from foreign sources (and true to greater or lesser degrees of any foreign country). If the US wants modern fabs owned and operated on its soil, the options are pretty much Intel or the govt itself. And Intel--like TSMC--isn't able to do it alone. Cheap modern fabs aren't a thing.

Though the modern fabs get the lion's share of attention (since they involve the most money), the CHIPS act is not only about modern fabs. There are many smaller US suppliers that are receiving funds that get little attention. The expansions of those older process tech fabs and the overall ecosystem are also important long term. The real question is overall execution.

 

[newtechldtech]

Taiwan being invaded by China is a real problem because China is a real superpower.

But at this point, I don't think anyone is worried about North Korea. They're a joke aside from nukes supplied by Russia, they have no power compared to South Korea. South Korea's jets are far more advanced, so are their tanks and artillery. Heck, South Korea could probably just take them with the trainer jets (KAI T-50) because North Korea's jets are so old and 400mph slower than the T-50 which is just a training jet but capable of holding missiles and a gun. Also all adult males have mandatory service so everyone is trained at this point. There's no way North Korea could take them in a fight, especially with the U.S. supplying weapons to South Korea, and Russia/China supplying weapons to North Korea. North Korea can't even keep their electrical grid up for 24 hours straight. They're in no shape to fight any war.

I'd say Samsung, SK Hynix are safe. But I'd definitely worry about supply from TSMC in the future should there be an invasion.

Once a country owns Nuclear weapons no enemy would be safe. the more advanced a nation becomes the more fragile it becomes , because they rely on Technology too much .

IF NK decides to attack , The first attack they will use will be an EMP bomb , which is a nuclear weapon detonated at a very high altitude high above the Centre of SK , Everything that has a wire in it or a circuit board will melt , and poof ALL SK will STOP. including their Jets on the ground . Radars , Electricity . Factories , Samsung Mamsung all will stop. Only Heavy shielded weapons will survive which is FEW in their Army , you cant shield Jets or drones from EMP attacks nor smart rockets that need to be light in weight or small vehicles .

Nuclear weapons can be used as EMP bombs and not to destroy cities and civilians. after the wave of EMP bombs the ground invasion will follow . and it will be like Vietnam war , man to man fight. and the North Koreans are better at this , they are not spoiled with riches and comfort.

 

[watzupken]

CHIPS Act funding is tied to Intel's performance, and the way Inter is performing currently, I wouldn't be surprised if they don't see any of the cash. Would you want to give billions of taxpayers' money to Intel, only to see Intel burn through it all, without expected results, and then collapse as a company? Intel needs to show that it has a bright future, but with the 13th/14th and now the Arrow Lake fiascos, Intel is showing us just the opposite. Pat is just being whiny.

Throwing taxpayers money at the Intel is inevitable if Intel continues to deteriorate. The foundry business is too important for the government to let it fail. I do think that in general, most of the foundry may not have been paid the amount that they were promised. They are not in financial difficulties like Intel, and are not getting as much as Intel, hence, may not be crying foul like Pat.