US authorities are preparing a “rescue plan for Intel” in case of further deterioration of its financial situation

The stock market’s initial reaction to the publication of Intel’s quarterly report was a rise in the stock price by up to 8%, but the company’s fundamental financial performance continued to deteriorate, and therefore American officials began to worry about the very survival of one of the oldest and most respected chip manufacturers in the United States. The authorities are ready to provide Intel with additional assistance if required.

Image Source: Intel

At least this is stated by Semafor, citing sources familiar with the progress of negotiations between representatives of the US Department of Commerce and Congress. The plan is still preliminary and very vague, but officials are coming to the realization that the United States cannot afford to let Intel’s business completely sink, since the company’s technology and production capabilities are planned to be used to revive the local semiconductor industry in the face of escalating geopolitical contradictions.

The $8.5 billion in non-repayable grants and $11 billion in soft loans provided for in the 2022 Chips Act will in any case not be included in the new Intel aid package, if one appears. By the way, in an interview with Barron’s, Intel CEO Patrick Gelsinger this week expressed concern about the slow release of Chip Act funds, through which the company expects to significantly reduce its own capital expenditures next year. According to Semafor, Intel still cannot pass the audit procedure that precedes the allocation of public funds, because it is not able to provide officials with a plausible plan for its financial recovery. Tellingly, in the first nine months of this year, Intel suffered about $19 billion in losses, of which almost $17 billion were recognized in the third quarter, when it seriously began restructuring, writing off illiquid assets and accelerating their depreciation.

In addition, the US authorities will definitely not buy out a large stake in Intel to save the company, since it is incurring multi-billion dollar losses, and such a disposal of taxpayers’ money is unlikely to be approved by political forces within the country. A more likely plan seems to be to encourage a deal involving Intel and a public company that could gain control of Intel’s processor design and manufacturing business, or merge its assets with it under some conditions. AMD and Marvell are mentioned as likely participants in such a deal.

Yesterday, the head of Intel emphasized in every possible way that next year the company will begin producing components produced using advanced Intel 18A technology at its facilities in Arizona. The first samples will begin to be delivered in the first quarter, and by the fourth quarter mass production of specialized products should be established there.

admin

Share
Published by
admin

Recent Posts

World’s Richest Lose $208 Billion in One Day Due to New US Tariffs

What kind of shocks the new US tariff policy will cause to the global economy…

1 hour ago

Cyclotech flies agile flying car with rotor ‘barrels’ instead of propellers for the first time

Austrian company Cyclotech has prepared a prototype of a flying car with unusual engines for…

1 hour ago

“I’m going to cry tears of happiness”: Apex Legends dataminers claim that Titanfall 3 is alive and will be released in 2026

Fans of Respawn Entertainment's sci-fi shooters Titanfall have already come to terms with the fact…

2 hours ago

SpaceX to Launch Starship for the First Time on Used Super Heavy Booster

On April 3, 2025, SpaceX conducted a static fire test of the Super Heavy booster,…

2 hours ago

Windows 11 Will Soon Get a Redesigned Start Menu That Can Be Customized

According to online sources, Microsoft is working on a major update to the Windows 11…

2 hours ago