Intel approaches $8 billion in CHIPS Act funding: Source | Wilnesh News

chip manufacturer Intel The CHIPS Act office is close to finalizing a deal that would provide about $8 billion in grants to the company as the Biden administration releases funds ahead of President-elect Trump’s inauguration, according to a person familiar with the matter.

The person said the $8 billion would be used for Intel’s factory construction work. The Commerce Department expects to finalize its ruling in the coming weeks, the person said.

Intel is also expected to win a $3 billion contract to make chips for the Department of Defense, a deal announced in September that represents a rare bright spot for the company as it works to grow its wafer fab business. The Commerce Department declined to comment for this story. Intel did not immediately respond to a request for comment.

wall street journal It was first reported that the two sides were close to finalizing the grant.

But Intel’s woes have intensified since the funding was initially announced. new york timesThe Wall Street Journal reported on Sunday, citing four people familiar with the matter, that the government decided to reduce funding by about $500 million due to uncertainty about Intel’s ability to execute on investment commitments and Intel’s changing technology roadmap and customer needs.

United States Grant British Semiconductor Earlier this month, Intel received a $6.6 billion grant, raising investor expectations that Intel will soon provide cash financing. Intel benefited from CHIPS Act tax breaks but has yet to receive a cash bonus, something Intel CEO Pat Gelsinger expressed dissatisfaction with.

“We’re frustrated that we’re not moving faster,” Kissinger told CNBC in October, referring to CHIPS Act funding. “They’re overly bureaucratic in the process. We’re eager to see these completed.”

U.S. House Speaker Mike Johnson previously said he might consider repealing the bipartisan CHIPS Act, but he later walked back those remarks. The Biden administration and appropriators touted the legislation as a job-creation machine.

Intel’s woes have intensified significantly this year. The company lost nearly $17 billion last quarter and has been scaling back Chief Executive Pat Gelsinger’s ambitious global plans.

Intel announced earlier this year that it would eliminate 15,000 jobs through layoffs and voluntary acquisitions. The company has taken steps to make it easier to separate its foundry business from its legacy business and has been working with advisers on an aggressive defense and broader strategy review, people familiar with the matter previously said. Intel is also seeking to raise cash by taking a minority stake in Altera’s business and has been sounding out interested suitors for weeks, CNBC previously reported.

It may also be eyeing a once unthinkable prospect: a potential takeover bid from a rising company Qualcommwhose market capitalization now dwarfs Intel’s.

watch: Intel CEO says we accomplished a lot this quarter