Six months later, Intel is still waiting for $8.5 billion Chips Act disbursement

[Shawn Knight]

The big picture: It's been nearly six months since Intel was chosen to receive a significant chunk of funding from the landmark Chips and Science Act, but the chipmaker has yet received a dime. Some close to the situation are now wondering when – or if – Intel will ever see the money.

Intel is on track to receive $8.5 billion in grants as well as $11 billion in low-interest loans through the government program. The funding is contingent upon meeting specific milestones and will come only after the government has done substantial due diligence, which could be part of what's slowing down disbursement.

Sources familiar with the subject told Bloomberg that Intel is frustrated with what it views as the government "dragging its feet," and wants them to expedite funding. They also claim Intel has been hesitant to share certain information with the Commerce Department, the division of the government that oversees Chips Act funding.

In a statement to the publication, Intel said it is making significant progress on projects in Arizona, New Mexico, Oregon, and Ohio, adding that they look forward to finalizing their funding agreement soon. The Commerce Department declined to comment on the matter.

Intel has been under significant pressure as of late, and a disastrous earnings report delivered last month didn't help matters. Shares in Intel have plummeted more than 34 percent since the report, reaching levels not seen in more than a decade.

In an effort to cut costs, the chipmaker announced a $10 billion cost reduction plan that includes eliminating thousands of jobs. Team Blue is also reportedly considering more extreme measures including separating certain divisions. Mergers and acquisitions are even said to be on the table at this point.

Just this week, rumors surfaced claiming Qualcomm was mulling a decision to purchase parts of Intel's chip design business. With a market cap of nearly $185 billion, Qualcomm no doubt has the financial ability to make something happen.

Sources told Bloomberg that Intel will consider what comes next during a board meeting later this month.

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Six months later, Intel is still waiting for $8.5 billion Chips Act disbursement

 

[umeng2002]

No student loan payouts. No reparations for black people. No Chips Act money. The government sure always seems to not pay up. Why people vote based on freebies is beyond me. Tax breaks are better. Instant savings.

 

[Vanderlinde]

Intel is pretty much or consistent lobbying around countries, looking for a huge fab to build. But it does not just pick a country because it's nice or because the location is good, no, its looking for the goverment who's going to fund (finance) the most in favor of Intel.

 

[CBTex]

No student loan payouts. No reparations for black people. No Chips Act money. The government sure always seems to not pay up. Why people vote based on freebies is beyond me. Tax breaks are better. Instant savings.

They sure as **** are quick to send money to Ukraine…. Intel must not be as good with the bribes.

 

[toooooot]

Intel is pretty much or consistent lobbying around countries, looking for a huge fab to build. But it does not just pick a country because it's nice or because the location is good, no, its looking for the goverment who's going to fund (finance) the most in favor of Intel.

No. It is falling down. The future did not look nearly as bad when the law was made as it does right now for Intel.
They cancelled or froze several other big projects.
It is because by the time those are built, there might not be Intel anymore.
They should not receive this money at all if they do not have a clear idea how
to get out of their trouble.

 

[BuckarooBonzaii]

Reminds me of an American Dad episode when Stan gets kidnapped and brainwashed by radicals and says something like: " If you want to buy a gun you'll have to wait 2 years. Then after 2 years you won't get the gun". Such a classic.

 

[ThomasTECH]

No student loan payouts. No reparations for black people. No Chips Act money. The government sure always seems to not pay up. Why people vote based on freebies is beyond me. Tax breaks are better. Instant savings.

Even tax breaks are usually given to segments of the private sector that are notorious for not paying taxes anyway. Therefore officials gets to shout tax breaks to the high heaven, but lose no tax revenue. Every time the officials sign off on spending taxpayer money they are looking for a way to get a commission out of it which is why it takes so long to get the funds dispersed, they need to have all of their sly setups in place to avoid public relations issues. Rarely if ever does the money go to who needs/deserves it, it goes to who can covertly pass it back/who toes the line.

 

[redgarl]

They can rot in hell. They only have themselves to blame. They wanted to challenge TSMC, then pay the price.

 

[Gars]

No

 

[rhdevries]

Yeah, that's what happens when you base your company or life on government handouts. They should spend the energy winning in the marketplace like AMD and Nvidia.

 

[Puiu]

No student loan payouts. No reparations for black people. No Chips Act money. The government sure always seems to not pay up. Why people vote based on freebies is beyond me. Tax breaks are better. Instant savings.

You sure are quick to blame the government, but ignore the part that says:
"Intel has been hesitant to share certain information with the Commerce Department, the division of the government that oversees Chips Act funding"
Intel is not innocent here. I had to **** a ton of documents, proofs of income and other things to get my mortgage and it took several months. I would think that it would be a tad harder than that to get billions in essentially free money

As for the student loans, republicans are blocking it from being fast-tracked by Biden. They have blocked it multiple times and the current version won't come into effect until the final rule is issued in October. That's when loan servicers should start forgiving student loans. (unless a court once again delays it, like the one in Georgia is trying to do)

"No reparations for black people." - I don't know much about it, since there is no plan, no proposal with clear numbers I can find and support for it is pretty abysmal (even for dems it sits at around 60%). there have been public discussions and that's about it.

 

[scavengerspc]

"No reparations for black people." - I don't know much about it, since there is no plan, no proposal with clear numbers I can find and support for it is pretty abysmal (even for dems it sits at around 60%). there have been public discussions and that's about it.

It is just a GOP talking point and nothing more.
And they have been using it for decades.
It was first announced that Dems were going to take your guns away back in the mid 60s.
And they still dust that off every cycle. Nobody believes them anymore, even most on the right, but they believe it still gives them a scare tactic.

 

[Later]

To be honest I would not give Intel anything, due to the last 2 generations they had, is just not reliable, they have to regain the trust they lost. Imagine a Defence Minister or Pentagon or Norad or any service in the country having those little suck boms cpu's in their computers, just thinking about that make me uneasy.

 

[Dimitrios]

No student loan payouts. No reparations for black people. No Chips Act money. The government sure always seems to not pay up. Why people vote based on freebies is beyond me. Tax breaks are better. Instant savings.

I agree. What upsets me is the amount of money the gov is spending to fly (NEWCOMERS) to America and giving them debits cards, Healthcare, food, clothing and housing. Some states are giving them large down payments for buying a house. I bet I will get backlash, but I have the "receipts" to back it up. Oh, did I forget job placement's for specifically them and they get free English classes. That would be crazy if that CHIPS ACT money went to the (newcomers) or be redirected to Ukraine.

 

[Axeia]

They sure as **** are quick to send money to Ukraine…. Intel must not be as good with the bribes.

What a terrible example. That aid got held up for months by the republicans.

 

[RaXelliX]

What a terrible example. That aid got held up for months by the republicans.

No to mention that most of the money given to Ukraine never actually leaves US as it's used for local weapons production that gives jobs to Americans. People who parrot things they have read on the internet think that US just sends 50 billion as a blank check to Ukraine with no oversight lol.

 

[Puiu]

I agree. What upsets me is the amount of money the gov is spending to fly (NEWCOMERS) to America and giving them debits cards, Healthcare, food, clothing and housing. Some states are giving them large down payments for buying a house. I bet I will get backlash, but I have the "receipts" to back it up. Oh, did I forget job placement's for specifically them and they get free English classes. That would be crazy if that CHIPS ACT money went to the (newcomers) or be redirected to Ukraine.

But you haven't addressed the elephant in the room, who is blocking all of that? Who voted against the bills or sued to stop them? It's not like the US doesn't have the money for these things.

 

[Axeia]

No to mention that most of the money given to Ukraine never actually leaves US as it's used for local weapons production that gives jobs to Americans. People who parrot things they have read on the internet think that US just sends 50 billion as a blank check to Ukraine with no oversight lol.

Yes, most of it is are things that are at the end of their shelve life. They'd have to be refurbished or disposed of, turns out that disposing them on top of invading russian forces is often times cheaper and weakens the 'main' US rival military (although that is definitely China and not Russia at this point, but still).
Also worth to note it's that aid given in the form of equipment the US gives the new price (even when it's stuff they'd have to dispose of, like cluster ammunition) whilst European countries lost the cost of what the equipment is still worth (which is part of the reason of why it looks like the US is footing most of the costs).
Even with those skewed costs the US total seems to be just under 100 billion usd total whilst the European countries total about 187 billion usd. Check the numbers below for yourself for anyone who thinks it's bollocks.

Ukraine Support Tracker - A Database of Military, Financial and Humanitarian Aid to Ukraine

The Ukraine Support Tracker lists and quantifies military, financial and humanitarian aid promised by governments to Ukraine.

www.ifw-kiel.de