US President Biden’s administration plans to cut part of Intel’s $8.5 billion in federal funding for computer chip plants nationwide. The reduction comes after a $3 billion deal with the military, which is separate from Intel’s financial performance or milestones.
The CHIPS and Science Act, signed into law in 2022, aims to boost US semiconductor manufacturing, producing advanced chips domestically and enhancing national security. To achieve this, the administration has pledged tens of billions of dollars for chip foundry construction and reduced reliance on Asian suppliers.
In August, Intel announced it would cut 15% of its workforce – around 15,000 jobs – in a bid to revamp its business and compete with rivals like Nvidia and AMD. The company manufactures chips alongside designing them.
Initially hailed as a job creator by President Biden, Intel’s funding is tied to the law promoting US chip manufacturing. The $280 billion package addresses pandemic-era concerns about supply chain disruptions and China’s control over Taiwan, which produces most advanced computer chips.
Source: https://apnews.com/article/intel-biden-chips-act-semiconductors-65a7a82be0898fb6f54f4387aa1c7e7d