New mega-funding from the US for Intel. According to Financial Times, the United States government would be ready to provide direct funding $ 8,5 billion to support Intel, the semiconductor giant that is going through a difficult period. As the company prepares to present an ambitious restructuring plan in October, which will cut as many as 15 jobs and could even put a gigafactory project in Germany into question, the focus is on how the government intends to intervene. Financing negotiations are already at an advanced stage and, while there is no guarantee that they will be concluded by the end of 2024, sources indicate that they could be completed before the end of the year. However, any negotiations for the full or partial acquisition of Intel's assets could negatively impact the process.
Le actions Intel shares move above $24, up 2,19% at the open Wall Street. Despite this, the 2024 budget marks a decline of almost 49%. The situation would be even more dramatic if the stock had not recovered about 22% in the last month thanks to rumors of potential M&A operations with Qualcomm and Apollo.
Chips Act: Salvation for Semiconductors?
Negotiations between Intel and the government are already at an advanced stage, but it is not guaranteed that the subsidy, which is based on chips act (the law that promotes chip production in the US), will be concluded by the end of 2024. If all goes well, this funding would be the largest ever received by a single company under this decree. In March, President Joe Biden had already awarded Intel nearly $20 billion in grants and loans to boost domestic chip production. This preliminary agreement included $8,5 billion in grants and up to $11 billion in loans, with part of the funds earmarked for the construction of two new factories in Arizona and the modernization of an existing one. In addition, in September, Intel already received a 3 billion euro public aid package for the development of advanced chips, focused on national security.
Intel in Arm's sights, but the company says no
But it's not just the internal crisis that worries Intel. The giant, once dominant in the chip market, is facing a fierce competition, especially from companies specializing in graphics units for artificial intelligence. And so, several contenders have come forward. According to rumors, after Qualcomm and Apollo, also Arm would be considering buying Intel or part of it. According to the latest rumors of Bloomberg, the well-known leader in chip design technologies, has reportedly set its sights on Intel's division that produces chips for smartphones and PCs, but has excluded the unit dedicated to factories. But Intel has clarified that that branch of the company is not on the market.
