10.09.2024., 18:19
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#6004
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McG
Datum registracije: Feb 2014
Lokacija: Varaždin
Postovi: 8,176
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Citiraj:
Intel’s CHIPS Act fund delayed by officials
Citiraj:
Intel is reportedly facing a delay in the release of its CHIPS Act funds promised by the White House back in March 2024. Bloomberg reports that the American chipmaker must meet the expectations it agreed upon during the initial negotiations before the federal government will open its purse drawstrings. Furthermore, it must pass stringent due diligence checks to ensure that the billions of dollars of taxpayer money Washington invested won’t go to waste.
Five months after the president traveled to Arizona to unveil a potential $20 billion package of incentives alongside Chief Executive Officer Pat Gelsinger, there are growing questions around when — or if — Intel will get its hands on that money. Intel’s woes also may jeopardize the government’s ability to reach its policy goals, which include establishing a secure supply of cutting-edge chips for the Pentagon and making a fifth of the world’s advanced processors by 2030.
The company is actively fighting for its survival at the moment, with its board considering cutting non-performing assets like the suspension or cancelation of its Magdeburg, Germany chip fab and selling off its stake in Altera. Massive cash inflation from any source would likely give Intel much-needed breathing room to save its core business, but it’s unlikely it will come from the promised CHIPS Act funds. The government will only release the earmarked investments once the winner has proven it can deliver.
While Intel told Bloomberg that it’s still making progress in its American projects and that it’s looking forward to finalizing its agreement with the federal government, there are reports that the company wants the CHIPS Acts released as soon as possible and that it feels that Washington is drawing out the process. The U.S. must invest in the semiconductor industry to help keep it in the lead. However, with Intel, one of its star players in the global chip race, running into trouble, it might need to reconsider its strategy and spread its investments across more companies. That way, the U.S. is not banking on Intel's success to stay ahead of the game.
Commerce Secretary Gina Raimondo encouraged executives at nVidia Corp. and Advanced Micro Devices Inc. to consider manufacturing at Intel’s sprawling Ohio site, which could become the world’s largest chipmaking facility when it’s operational. Neither currently plans to do so. nVidia, which relies on TSMC and Samsung for its production needs, has said it’s in the very earliest stages of evaluating Intel as a potential supplier. AMD CEO Lisa Su has sidestepped questions on whether she would consider using Intel, answering that her company is happy with its current main supplier, TSMC.
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Izvor: Tom's Hardware i Bloomberg
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