On Tuesday, November 26, the US Commerce Department said it was finalizing a $7.86 billion government subsidy for Intel.
It’s worth mentioning that in March it was announced that the mentioned amount would be $8.5 billion. Since then, Intel, based in Santa Clara, California, has won a separate $3 billion award from the Pentagon.
The award announced on Tuesday will support nearly $90 billion in production projects in regions of the United States such as Oregon, Arizona, Ohio, and New Mexico.
US Commerce Secretary Gina Raimondo said that for the first time in a very long time, American-designed chips are being manufactured and packaged by American workers in the United States by an American company.
A government official told reporters that Intel has already met some initial milestones of the project and will receive at least $1 billion of the award before the end of the current year. Also, in this case, it was separately noted that the reduction of the grant was not related to the company’s broader struggles in 2024.
Intel’s margins have narrowed. It is worth noting that in general, the current period in the company’s activity is one of the most difficult in the history of its existence. Intel is faced with the need to lay off thousands of employees. Financial difficulties are a serious challenge for the company.
It is worth mentioning that Intel has been one of the leaders in the global chip manufacturing industry in the past. Over time, the company’s position has weakened significantly. Intel is now striving to regain its former greatness in the space of the mentioned industry. It is unknown whether the company will be able to achieve the appropriate result, but it is obvious that this will be a difficult path that does not provide quick results.
Intel chief executive officer Pat Gelsinger said Tuesday that strong bipartisan support for restoring the United States’ technological and manufacturing leadership drives historic investments that are critical to the country’s long-term economic growth and national security.
As we have reported earlier, Intel Invests $300 Million in China.
