Intel and U.S. Government Near $8.5 Billion Funding Agreement

Intel and the U.S. government are close to finalizing $8.5 billion in direct funding, expected before year’s end. Discussions are advanced but could extend into 2024. President Biden awarded Intel $20 billion in grants and loans earlier this year to boost U.S. semiconductor production. Qualcomm has shown interest in acquiring Intel.

Intel and the U.S. government are poised to finalize an $8.5 billion direct funding agreement before the end of the year, financial insiders disclosed.

While discussions have reached an advanced stage, there is no guarantee of finalization before the closure of 2024. The potential takeover of parts of Intel's business could jeopardize the deal. Both Intel and the U.S. Department of Commerce have yet to respond to requests for comment.

In March, President Joe Biden allocated nearly $20 billion to Intel through grants and loans to enhance domestic semiconductor production. The deal includes $8.5 billion in grants and up to $11 billion in loans, earmarked for new factories and modernization efforts in Arizona.

This month, Reuters reported that Qualcomm is exploring a potential acquisition of Intel. The once-dominant chipmaker has lost ground to Taiwan Semiconductor Manufacturing Co (TSMC) and struggled to produce a sought-after chip for the AI boom led by Nvidia and AMD.

(With inputs from agencies.)