Before the year ends, Intel and the US government will probably finalize $8.5 billion in direct support for the chipmaker, according to a report.
As per the report, although the talks were at an advanced level, there was no assurance they would be concluded before the end of 2024. It further stated that any acquisition of all or a portion of Intel’s company might potentially scuttle the talks.
Requests for a comment were not immediately answered by Intel or the US Department of Commerce.
In an effort to increase Intel’s domestic semiconductor chip production, U.S. President Joe Biden granted the business grants and loans totalling around $20 billion in March. A preliminary agreement was reached for Intel to receive up to $11 billion in loans and $8.5 billion in grants in Arizona. A portion of the funds will be used to modernize an existing factory and construct two new ones.
Earlier this month, Qualcomm had reached out to Intel to discuss a possible purchase of the struggling chipmaker.
Once the industry leader in chip manufacturing, Intel lost its production advantage to rival Taiwan Semiconductor Manufacturing Co. (TSMC) and was unable to create a chip that was in high demand for the generative artificial intelligence (AI) boom that Nvidia and AMD were able to profit from.
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