It has been reported that the U.S. government and lawmakers have been quietly discussing a rescue plan in case Intel’s financial situation worsens.
Citing sources on the 2nd (local time), Semaphore reported that the relief plan currently being discussed would transcend the scope of the CHIPS Act, which provides no less than $8.5 billion (about 12 trillion won) to Intel by the top of 2024.
Lawmakers emphasized that this was only a preventative discussion in case Intel went bankrupt. In truth, Intel reported a powerful outlook in its third quarter 2024 earnings call.
However the discussion shows just how essential Intel is to Washington, because the U.S. seeks to realize a bonus over China within the high-tech sector.
AMD and Nvidia are each American firms, but Intel is the one company that designs and manufactures chips. “Intel is the one U.S. company that designs and manufactures cutting-edge chips, and plays a critical role in constructing a globally competitive semiconductor ecosystem within the U.S.,” an Intel spokesperson said.
If Intel fails, america may have to depend on TSMC and Samsung to supply cutting-edge chips. These two firms have already got production plants in america, but they only provide a portion of their total production. Moreover, it’s exposed to risks on account of geopolitical tensions with China.
Another excuse why Congress and the White House don’t need Intel to fail is since it is certainly one of America’s major exporters. Intel’s export revenue alone exceeded $40 billion (about KRW 55 trillion) in 2023, and it’s producing cutting-edge chips for the military in cooperation with the Department of Defense’s Secure Enclave program, playing a very important role within the national economy and security. there may be.
Intel can be a significant employer. Even though it is within the means of shedding greater than 16,000 people, there are still greater than 120,000 employees on the payroll.
Nevertheless, in keeping with sources, the White Home is avoiding providing temporary relief payments just like the one provided to Chrysler and General Motors in 2008. As an alternative, it is thought to encourage private sector mergers.
For instance, merging with Intel’s competitors corresponding to AMD or Marvell is being discussed. In truth, there have been rumors that ARM and Qualcomm were desirous about acquiring part or all of Intel. Nevertheless, some experts indicate that Intel’s division is not going to be effective.
Officials said that in any case, they’re hoping that Intel is not going to be pushed right into a situation where it needs federal support. Intel’s 18A chip is showing some results, and two firms, including Amazon, have pledged to make use of Intel technology in next-generation semiconductors.
If all goes in keeping with plan, Intel will give you the option to recuperate and grow to be competitive again. Nevertheless, it is alleged that it shouldn’t be a foul idea for the U.S. government to arrange a backup plan in case of an emergency.
Reporter Park Chan cpark@aitimes.com
