According to a Financial Times story on Friday that cited people familiar with the talks, Intel and the US government will likely finalize $8.5 billion in direct funding for the chipmaker before the year ends.
Despite the talks being at an advanced stage, the report stated that there was no guarantee they would conclude before the end of 2024. It further stated that any acquisition of all or a portion of Intel’s business could potentially scuttle the talks.
Intel and the US Department of Commerce did not immediately respond to Reuters’s requests for comment.
In an effort to increase Intel’s domestic semiconductor chip production, US President Joe Biden granted the company grants and loans totaling almost $20 billion in March.
Intel has reached a preliminary agreement to receive up to $11 billion in loans and $8.5 billion in grants in Arizona. We will use a portion of the funds to modernize an existing factory and construct two new ones.
According to a Reuters story from earlier this month, Qualcomm has reached out to Intel to discuss a possible purchase of the struggling chipmaker.
Intel, once the industry leader in chip manufacturing, lost its production advantage to rival Taiwan Semiconductor Manufacturing Co. and was unable to create a chip that was in high demand for the generative artificial intelligence boom, which Nvidia and AMD benefitted from.
