The US Commerce Department is exploring options to rescue struggling chipmaker Intel, with a potential merger being considered. The move aims to ensure the US remains self-sustaining in semiconductor production, as Intel’s financial woes threaten its ability to maintain “mature” processes and facilities.
Intel’s chip business is crucial to the US’s semiconductor ambitions, but its financial struggles have raised concerns among policymakers. Apart from financial injections, they are now looking towards a solid solution to the problem. The US administration has given an apparent “green signal” for a merger deal, with Qualcomm reportedly being more serious about acquiring Intel.
However, it’s unclear whether a merger will work with Intel’s business dynamics. Given the US government’s focus on the foundry division, a potential sale of the chip business to companies like Qualcomm, ARM, or AMD is more likely. This move would be historic for the chip markets and could lead to an unexpected partnership between Intel and AMD.
The CHIPS Act provides $8.5 billion in grants and $11 billion in low-interest loans to support US chipmakers. However, Intel’s delay in receiving funds has created significant financial challenges. Despite outperforming Q3 2024 earnings expectations, the company still has a long way to recover from its harsh conditions.
Source: https://wccftech.com/us-policymakers-open-to-potential-intel-merger-deal-explore-options-to-pull-team-blue-out-of-danger