Intel and the CHIPS Act: $30 billion investment without return
Intel management has expressed dissatisfaction with delays in payments under the CHIPS law, despite the company's significant investment in manufacturing in the United States. The CEO emphasizes the importance of completing ongoing projects and is considering alternative sources of funding.
Intel disappointment
Investment without return
Intel CEO Pat Gelsinger speaks with Yahoo! Finance expressed its dissatisfaction with the situation with the implementation of the American CHIPS law. According to him, the company has invested heavily in the development of production in the United States, but has still not received the promised government support.
Intel's Massive Investment
In the two years since the CHIPS Act was passed, Intel has invested a whopping $30 billion in its production facilities in the United States. However, despite this hefty investment, the company has not received a penny in the grants required by law.
New projects and expectations
After the CHIPS and Science Act went into effect, Intel began producing chips at the New -Mexico and began building new plants in Arizona and Ohio. However, due to declining demand for processors and the slow development of the Intel Foundry as a contract manufacturer, the company had to delay the launch of the Ohio campus for several years.
Alternative Sources of Funding
Due to delays in obtaining government funding, Intel was forced to seek alternative ways to implement its projects . The company has launched a semiconductor co-investment program (SCIP), under which, for example, 49% of Fab 52 and Fab 62 manufacturing capacity in Arizona will be owned by co-owners Brookfield Asset Management.
Prospects and Hopes
Despite the current difficulties, Pat Gelsinger expresses confidence that Intel will be able to complete the projects it has begun, with or without CHIPS funding. He emphasizes the importance of this law to US industrial policy and the company's pride in participating in its implementation.
Glossary
- Intel is an American corporation, the world's largest manufacturer of microprocessors
- CHIPS - US Semiconductor Manufacturing Support Act
- Pat Gelsinger - CEO of Intel
- Yahoo! Finance - financial news portal
- Brookfield Asset Management - Canadian investment company
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Discussion of the topic – Intel and the CHIPS Act: $30 billion investment without return
Intel CEO Pat Gelsinger expressed disappointment at the lack of direct government investment under the CHIPS Act, despite the company investing $30 billion in U.S. factories over the past two years.
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Giovanni
It appears that Intel overestimated the effectiveness of the CHIPS Act. $30 billion of investment without government support is serious. 🤔 I wonder how this will affect the company’s future projects?
Amelie
Giovanni, I think this shows how confident Intel is in its abilities. They continue to invest despite the lack of direct support. This speaks to their long-term strategy and faith in the American market. 💪
Hans
I agree with Amelie. Intel is clearly playing for the long haul. But still, $30 billion without support is risky. I hope the US government will appreciate these efforts and expedite the process of disbursing CHIPS funds. 🏭💰
Olga
And it seems to me that Intel relies too much on government support. Maybe it’s worth reconsidering the strategy and looking for other sources of financing? At the end of the day, a business must be self-sufficient. 🤷♀️
Bernard
It's all nonsense. Another game between corporations and government. These investments are of no use to ordinary people. It would be better to lower the prices for chips than to build factories.
Sofia
Bernard, I disagree! New factories mean jobs and technology development. And price reductions will come over time when production increases. Intel is doing important things for the US economy. 🇺🇸
Carlos
Sofia is right. Also, don't forget the geopolitical aspect. Domestic chip production is a matter of national security. Intel, through its actions, strengthens the US position in this area. 🌐
Amelie
I wonder how Intel's competitors will react to this situation? AMD, TSMC, Samsung are probably monitoring developments. Maybe this will push them to be more active in the American market? 🏆