Intel’s CEO Pat Gelsinger has expressed his “frustration” over the US CHIPS Act, claiming that the Biden administration has delayed the release of the pledged “emergency funds”
Intel Demands More Cooperation From The US Government Despite Not Fulfilling Semiconductor Ambitions
Team Blue is in a pretty difficult situation when it comes to the firm’s financial reserves along with sustainability in the markets, and out of all the “desperate” measures adopted by the company, Intel has been pretty optimistic about the “aid” that they are expected by the US government under the CHIPS Act, but unfortunately for them, the political situation has apparently “delayed” the release of emergency funds announced by the Biden administration, which is why Intel’s CEO Pat Gelsinger has shown disappointment towards the stance of the government:
There’s been renegotiations on both sides. My simple message is, ‘Let’s get it finished’. Obviously, with elections, you know, nigh in front of us, hey, we want this done.
– Intel’s CEO Pat Gelsinger via New York Times
According to Intel’s CEO, the Biden administration hasn’t released the $8 billion funding that they were promised amid the company’s “worst” financial period. Apart from this, Intel was also in line to get $11 billion in loans and up to $25 billion worth of tax credits, yet the financial package hasn’t gone through yet, which has put Team Blue in a tough spot, especially in a time when the company has been experiencing dwindling economic conditions, with rumors of witnessing an entire sell-off to companies like ARM and Qualcomm.
It is important to note that Intel is a key asset for the US, given the country’s ambitions to become self-sufficient in semiconductor production and reduce dependence on foreign nations. The CHIPS Act, an incentive scheme worth $280 billion, targets fueling semiconductor development in the country, but its biggest recipient, Intel, hasn’t managed to deliver down on expectations, especially when it comes to fulfilling existing projects, which is why the government has withheld promised funding, given Intel’s failure to achieve objectives.
Intel is going to take chips money, build an empty shell of a factory and then never actually open it, because they don’t have customers.
– Caitlin Legacki, Former Commerce Department official
When looking at Intel’s existing projects in the US, such as the facilities in Ohio, it is obvious that the firm hasn’t been able to meet expectations, whilst competitors like TSMC have already started production up and running and even have achieved yield rates better than their native facilities. In one way, it won’t be wrong to say that Intel has adopted a “money-grabbing” scheme without executing the plans, which is why the government’s trust is so low in them.