Intel has spent much of the last year struggling, and one way to tell is all the reports that other major tech companies are seeking to potentially pu

US government considering cash infusions, AMD merger to help struggling Intel

submited by

Style Pass

2024-11-06 13:30:07

Intel has spent much of the last year struggling, and one way to tell is all the reports that other major tech companies are seeking to potentially purchase the longtime chip maker. We've seen claims that tech giants like Apple have considered taking over Intel to Qualcomm mulling over an Intel purchase.

With Intel reporting over $16 billion in losses for this past quarter, Semafor reports that the US Commerce Department is looking at multiple avenues to bail the American company out.

One iteration would involve a law called the CHIPS Act funding to give Intel a cash injection, which may not actually right the ship. The CHIPS act is meant to help American tech companies that manufacture components compete with China via cash infusions. Currently, Intel is slated to receive over $20 billion in grants and low-interest loans via CHIPS.

Reportedly, Intel hasn't received any of that money due to concerns from U.S. officials that the company needs to present a "viable" turnaround plan. Supposedly, policymakers do not have the stomach for a bailout a la 2008, where the government took a direct stake in ailing companies.