Friday, September 27th 2024

Intel's Silver Lining is $8.5 Billion CHIPS Act Funding, Possibly by the End of the Year

Intel's recent financial woes have brought the company into severe cost-cutting measures, including job cuts and project delays. However, a silver lining remains—Intel is reportedly in the final stages of securing $8.5 billion in direct funding from the US government under the CHIPS Act, delivered by the end of the year. The potential financing comes at a crucial time for Intel, which has been grappling with financial challenges. The company reported a $1.6 billion loss in the second quarter of 2024, leading to short-term setbacks. However, thanks to sources close to the Financial Times, we learn that Intel's funding target will represent the CHIPS Act's largest share, leading to a massive boost to US-based semiconductor manufacturing.

Looking ahead, the potential CHIPS Act funding could serve as a catalyst for Intel's resurgence, reassuring both investors and customers about the company's future. A key element of Intel's recovery strategy lies in the ramp-up of production for its advanced 18A node, which should become the primary revenue driver for its foundry unit. This advancement, coupled with the anticipated government backing, positions Intel to potentially capture market share from established players like TSMC and Samsung. The company has already secured high-profile customers such as Amazon and (allegedly) Broadcom, hinting at its growing appeal in the foundry space. Moreover, Intel's enhanced domestic manufacturing capabilities align well with potential US government mandates for companies like NVIDIA and Apple to produce processors locally, a consideration driven by escalating geopolitical tensions.
Source: Financial Times
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58 Comments on Intel's Silver Lining is $8.5 Billion CHIPS Act Funding, Possibly by the End of the Year

#1
AusWolf
What's with the $3 billion mentioned in the previous article? How did it become 8.5 all of a sudden? :wtf:
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#2
64K
AusWolfWhat's with the $3 billion mentioned in the previous article? How did it become 8.5 all of a sudden? :wtf:
That money wasn't from the CHIPS Act. Different funding source.
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#3
phanbuey
There will be unlimited money to keep their foundries going. Our runaway $3.5 trillion military industrial complex isn't keen on having their AI chips manufactured 100 miles off the coast of China by a company they can't control.
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#4
mb194dc
Every day another story to Pump Intel ?

The bottom line is their main products aren't competitive anymore. Unless they have another breakthrough like Core in 2006, they're doomed to decline no matter how much money the government bungs at them.
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#5
Daven
Give a failing company a bunch of money. It's the American Way!
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#6
TheLostSwede
News Editor
mb194dcEvery day another story to Pump Intel ?

The bottom line is their main products aren't competitive anymore. Unless they have another breakthrough like Core in 2006, they're doomed to decline no matter how much money the government bungs at them.
If you think a news post on TPU can do that, you have way too high thoughts about who reads TPU...
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#7
AusWolf
64KThat money wasn't from the CHIPS Act. Different funding source.
Ah, so the CHIPS Act was created as yet another way for the US Gov to fund Intel, not as the only one.

Here's $8.5 bil for the Chips Act. And here's another $3 bil for um... just because. :rolleyes: I wish I had friends like the top dogs at Intel do.
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#8
kondamin
phanbueyThere will be unlimited money to keep their foundries going. Our runaway $3.5 trillion military industrial complex isn't keen on having their AI chips manufactured 100 miles off the coast of China by a company they can't control.
including care for veterans it's about a trillion
a bit more than the interest on old debt it has to pay this year

unlike bombs intel and the products they produce will generate quite a bit of tax income in the future.
bombs tend to ruin things that generate tax
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#10
Vayra86
phanbueyThere will be unlimited money to keep their foundries going. Our runaway $3.5 trillion military industrial complex isn't keen on having their AI chips manufactured 100 miles off the coast of China by a company they can't control.
This, everything else is just wool over your eyes, basically
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#11
windwhirl
TheLostSwedeIf you think news on TPU can do that, you have way too high thoughts about who reads TPU...
W1zzard would have to be quite the wizard to control the rise and fall of companies with just a few paragraphs of text and a "Publish" button :laugh:
AusWolfAh, so the CHIPS Act was created as yet another way for the US Gov to fund Intel, not as the only one.

Here's $8.5 bil for the Chips Act. And here's another $3 bil for um... just because. :rolleyes: I wish I had friends like the top dogs at Intel do.
As if Intel was the only company receiving money, and as if China didn't do the same and probably more.

Also, regardless of what you think, electronics are a key part of the military industry. The US Govt. funding related industries is par for the course.
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#12
64K
AusWolfAh, so the CHIPS Act was created as yet another way for the US Gov to fund Intel, not as the only one.

Here's $8.5 bil for the Chips Act. And here's another $3 bil for um... just because. :rolleyes: I wish I had friends like the top dogs at Intel do.
The CHIPS Act provides 53 billion dollars in funding to try to bring back semiconductor fabs to the US. Not sure how successful it will be. The 3 billion dollars that Intel is getting comes by way of the Department of Defense because we are 'Muricans and we spend ungodly amounts of money (916 billion dollars last year) on defense to save the world. I'm not exactly clear on what we are saving the world from but we're damned and determined to save it anyway. :shadedshu:
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#13
Easo
DavenGive a failing company a bunch of money. It's the American Way!
Because at this point it actually is about national security. As long as chips are made it will be enough (and frankly, that's understandable).
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#14
Daven
phanbueyHmm... SMIC, Zhaoxin, Huawei, BYD, and several hundred others would like to challenge that title.

www.techpowerup.com/327036/zhaoxins-kx-7000-8-core-processor-tested-in-detail-bested-by-7-year-old-core-i3

I think the last numbers I saw was Big Fund pumping close to $60BN A YEAR into the chinese chipmakers.
Last time I checked these are not failing companies.
EasoBecause at this point it actually is about national security. As long as chips are made it will be enough (and frankly, that's understandable).
There isn’t enough money to save Intel so its not understandable.
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#16
JohH
Imagine being AMD and having the upper hand over your rival for the first time in 20 years. Then the government steps in and gives them billions while they still have 70%+ market share.

Intel sell chips at below the price they need to develop future fabs (hence the insane losses their fabs have reported). The government is going to foot the bill for it. But mainly Intel will profit from it. For DoD purposes Samsung and TSMC fabs in the US are just as good, if not better.
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#17
freeagent
That would be enough to lift everyone in the USA out of poverty.

Priorities..
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#18
kapone32
windwhirlW1zzard would have to be quite the wizard to control the rise and fall of companies with just a few paragraphs of text and a "Publish" button :laugh:



As if Intel was the only company receiving money, and as if China didn't do the same and probably more.

Also, regardless of what you think, electronics are a key part of the military industry. The US Govt. funding related industries is par for the course.
Only reason my family survived the 80s was that my Dad worked for the Military Industrial Complex.
freeagentThat would be enough to lift everyone in the USA out of poverty.

Priorities..
Hopefully it is coming soon
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#19
JohH
freeagentThat would be enough to lift everyone in the USA out of poverty.

Priorities..
Is that sarcasm? A one time payment of $25 per resident can't lift anyone out of poverty...
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#20
Steevo
JohHIs that sarcasm? A one time payment of $25 per resident can't lift anyone out of poverty...
Considering I pay the government 28% of my income not including local taxes its still $25 too much, I didn't democratically vote for giving money away to private companies or to wars. Its disgusting to be taxed by people who produce nothing but misery.


Also, notice the "everyone in poverty" part. 37 million in poverty. $2300 each, enough to move to someplace with work and get started, so yes, it would be enough to get everyone in poverty a chance to work at getting out. Some will never get out as they are free to make terrible stupid choices.


On the topic, look at why these companies stopped building foundries in the US....... then ask yourself who caused it, and why we are now paying for it.
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#21
phanbuey
DavenLast time I checked these are not failing companies.
Obviously, when you get 60 billion a year from the government it's a bit hard to fail. Becuase how else would a company that just spent hundreds of billions to create a chip that gets smashed by an 8 year old i3 be such a huge success?
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#22
Neo_Morpheus
JohHThen the government steps in and gives them billions while they still have 70%+ market share.
And the key word here is "Gives" as Intel will never have to pay that back.
But when Intel almost killed AMD via illegal actions, the gov only gave Intel a small slap on the wrist.
JohHIntel sell chips at below the price they need to develop future fabs (hence the insane losses their fabs have reported).
Funny enough, this is one of the main reasons why Dell continues to only use Intel chips on their lucrative business lines (Latitude, Optiplex and Precision).
JohHThe government is going to foot the bill for it. But mainly Intel will profit from it.
Correct, free money.
JohHFor DoD purposes Samsung and TSMC fabs in the US are just as good, if not better.
Correct and also, I believe that both IBM and GloFO has foundries in NY, yet you dont hear them receiving nothing. Well, at least, I havent.
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#23
phanbuey
Neo_MorpheusAnd the key word here is "Gives" as Intel will never have to pay that back.
But when Intel almost killed AMD via illegal actions, the gov only gave Intel a small slap on the wrist.

Funny enough, this is one of the main reasons why Dell continues to only use Intel chips on their lucrative business lines (Latitude, Optiplex and Precision).

Correct, free money.

Correct and also, I believe that both IBM and GloFO has foundries in NY, yet you dont hear them receiving nothing. Well, at least, I havent.
Those foundries are all over 10nm, samsung is shipping 14nm in the USA, with the exception of IBM, but not sure if anyone knows what they're up to. Glofo is shipping 12nm, and TSMC is accused of purposely dragging their feet on the 4nm Arizona fab construction despite getting CHIPS act money, and negotiating for more money as they stall.

Intel 18A (1.8nm) is expected to enter mass production in 2025 - the same time the 4nm TSMC facility will come online.
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#24
Neo_Morpheus
phanbueyThose foundries are all over 10nm, samsung is shipping 14nm in the USA, with the exception of IBM, but not sure if anyone knows what they're up to. Glofo is shipping 12nm, and TSMC is accused of purposely dragging their feet on the 4nm Arizona fab construction despite getting CHIPS act money, and negotiating for more money as they stall.

Intel 18A (1.8nm) is expected to enter mass production in 2025 - the same time the 4nm TSMC facility will come online.
Last I checked, none or maybe very little of the chips used are build in new advanced process.

Hell, Intel doesnt have crap right now, so whatever is that the Gov is using, I'm pretty sure that the others can either match or use some of that sweet free Gov money to upgrade.

The thing is, once again, everyone making excuses for poor ol'Intel.

They should be allowed to die and the other american companies to pick the necessary parts (in this case, eng and fabs and patents) from Intel carcass.
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#25
phanbuey
Neo_MorpheusLast I checked, none or maybe very little of the chips used are build in new advanced process.

Hell, Intel doesnt have crap right now, so whatever is that the Gov is using, I'm pretty sure that the others can either match or use some of that sweet free Gov money to upgrade.

The thing is, once again, everyone making excuses for poor ol'Intel.

They should be allowed to die and the other american companies to pick the necessary parts (in this case, eng and fabs and patents) from Intel carcass.
You mean like we let AMD(Glofo) and Texas instruments flounder? they really came back (not). That tactic sounds really cool but it doesn't actually work when the competition has unlimited money that they're willing to invest. I get what you're saying, and I totally appreciate the sentiment -- but that only works in a true free/fair market. Semiconductors are not a fair market.


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