News Intel CEO is "frustrated" with CHIPS Act payout progress — Intel has received $0 from the $8.5 billion that the US government promised

[Admin]

In an interview, Pat Gelsinger told the New York Times that he has been "frustrated with the process" of securing promised CHIPS Act funding. Biden's CHIPS Act promised $8.5b for Intel, but Intel has seen none of it so far.

Intel CEO is "frustrated" with CHIPS Act payout progress — Intel has received $0 from the $8.5 billion that the US government promised : Read more

 

[doomtomb]

From the time Gelsinger said he was going to double down on fabs, I knew Intel's fate was sealed. Fabs are extremely difficult and expensive undertakings. I'd say give him the money but don't be surprised when it doesn't work out and he comes back for more. Then say no and let the markets decide.

 

[rluker5]

Has any company received money through the CHIPS act or is it just some fraud with the gov keeping all of the money for themselves?

 

[DS426]

Why is there talk on Qualcomm acquiring Intel again? Do they really think that would and should get past anti-trust hurdles? I just don't think it's good for consumers at all, nor the tech industry as a whole. If Intel gets these funds and gets some more positive news out, surely they'd claw back enough market cap to make this a merger scenario, not an acquisition? (Not that I see that as any better).

 

[diminishedfifth]

And people are frustrated with Intel because of their sketchy actions but they're still there doing it.

 

[wbfox]

And we're all tired of your taking of US taxpayer money then turning around and firing more US workers, selling off more chunks of Intel, and entirely failing to do anything other than trying to sell Intel's way out of this problem Pat.

 

[wbfox]

Why is there talk on Qualcomm acquiring Intel again? Do they really think that would and should get past anti-trust hurdles? I just don't think it's good for consumers at all, nor the tech industry as a whole. If Intel gets these funds and gets some more positive news out, surely they'd claw back enough market cap to make this a merger scenario, not an acquisition? (Not that I see that as any better).

There is no such thing as a merger. One will always win, be it via an overt victory like an acquisition or internal power struggle post merger (see Boeing and McDonnell Douglas).

 

[scottsoapbox]

I'm frustrated that my money is going to the worst chip company (currently) because they have better political connections than their rivals.

Let the market rather than politicians decide where money goes.

 

[joeer77]

I want my corporate welfare money waaahhh.

I want my cut of Q1 2025 Intel earnings since you took my tax money.

 

[RUSerious]

Do you guys understand, that like almost every country on the planet, we subsidize US business to the tune of 100s of Billions a year in grants and tax breaks? That money helps keep millions of jobs in the US. Maybe you'd rather they all be out of work collecting welfare and SNAP benefits. I'd rather subsidize work rather than subsidizing poverty.

 

[plutarchheavensbee62]

And we're all tired of your taking of US taxpayer money then turning around and firing more US workers, selling off more chunks of Intel, and entirely failing to do anything other than trying to sell Intel's way out of this problem Pat.

They haven't received a cent of chips act money buddy

 

[plutarchheavensbee62]

I'm frustrated that my money is going to the worst chip company (currently) because they have better political connections than their rivals.

Let the market rather than politicians decide where money goes.

They haven't received a cent of chips act money yet. You should research what the hold up is.

 

[Pete Mitchell]

The government is smart to hold back funds until they meet milestones. Their Ohio fab is years behind schedule, so it’s entirely justifiable to withhold funds until real progress is made.

 

[Pete Mitchell]

Do you guys understand, that like almost every country on the planet, we subsidize US business to the tune of 100s of Billions a year in grants and tax breaks? That money helps keep millions of jobs in the US. Maybe you'd rather they all be out of work collecting welfare and SNAP benefits. I'd rather subsidize work rather than subsidizing poverty.

You’d rather subsidize shareholders you mean. That’s exactly what will happen if the government just hands over the money.

 

[Pete Mitchell]

Pat is the part of the reason Intel is in the crapper to begin with. Terrible CEO.

 

[endocine]

What is intel getting done exactly, and specifically Gelsinger? Intel keeps getting worse each day, its not heading in the right direction.

 

[thestryker]

The empty shell fear is very real as that's exactly what Intel did over a decade ago in Arizona. They're of course using the fab space now, but they'd met all hiring requirements for the subsidies before the building was finished and then found they didn't need the capacity so it sat.

The seemingly obvious solution would be some sort of requirement either timeframe and/or equipment investment or else the funds get clawed back. I'm not sure what mechanisms are available for things like that however. Propping up domestic silicon fabrication is much more beneficial than a lot of government subsidies, but building in accountability should be mandatory.

 

[TheHerald]

I'm frustrated that my money is going to the worst chip company (currently) because they have better political connections than their rivals.

Let the market rather than politicians decide where money goes.

What rivals? All fab companies are taking money afaik. Even TSMC, no? Don't let your intel hatred cloud your judgement of reality man. Not a good idea.

 

[TTTaylor]

Money all went to New York. Ask x Governor Cuomo and Senator Shummer, they were the ones who cooked up the scheme.

 

[Pierce2623]

Quick !!! Give me a handout so I’m not the guy that put Intel out of business!!

 

[Pigpig]

below statement is wrong, TSMC who own big customers like Apple, Nvidia, AMD also didn't receive $ .
“[There is fear that] Intel is going to take chips money, build an empty shell of a factory and then never actually open it, because they don’t have customers,” said former Commerce Department official Caitlin Legacki.

 

[Sestos]

Has any company received money through the CHIPS act or is it just some fraud with the gov keeping all of the money for themselves?

Well government cannot keep money for themselves since that is not how government funding works. It appears Intel has not provided anything on how it will use the funds, and Intel appears to want the cash to offset their losses which have nothing to do with building chips in the US. If Intel moves forward with a real plan , not just breaking ground, money will flow. No one wants a repeat of Foxcomm.

 

[magbarn]

Pat is the part of the reason Intel is in the crapper to begin with. Terrible CEO.

He's at least willing to spend money on R&D, the last decade on Intel CEO's were even worse, propagating a lost decade of 4 core consumer CPU's and 14nm++++++++++++++. He's trying to fix the Titanic, unfortunately he might have took over after it already hit the iceberg.

 

[waltc3]

It's been my mantra for years, with Intel: company desperately needs to spin off its CPU division to get focused on its core competencies, if indeed any actually remain. Put everything else in the other half of the company, except the FABs, which should sink or swim on their own. Intel's current internal organization hails from the company's days as a high-end x86 CPU monopolist. AMD had to change to survive and prosper, Intel is certainly not exempt. Gelsinger knows the past, so it's not surprising to see Intel attempting to reanimate its dead past. Gelsinger's halcyon markets of old no longer exist, and it's sobering to see Intel begging for crumbs from the US government to survive. I believe Gelsinger once said, paraphrased, "If we don't get this money, we may not survive." I'm not knocking Gelsinger, as he knows what he knows but that's it.

 

[YSCCC]

Actually IMO giving them money isn't an issue, we need more fab other than TSMC, just to make extra safety buffer if someday TSMC went bad also, and as Nvidia have reminded us repeatatively you want some backup plan and not let monopoly to grow..

But then after getting the money and firing a a lot of the working engineers and pays himself a lot of bonus is another thing