ccording to the New York Times from various unnamed sources, the U.S. government is planning to reduce Intel Corp’s preliminary from $8.5 billion to less
than $8 billion.
This adjustment is considered to be a $3 billion contract that Intel has received to manufacture chips for the Pentagon, various sources stated for the New York Times.
This year the former the administration of former U.S President Joe Biden, stated that they plan to award Intel with almost $20 billion formed by grants and loans, in order to boost the domestic semiconductor chip of the company and to represent the largest government investment which supports the advanced chip manufacturing industry.
So, the U.S. government declared that would give the chip manufacturer, a preliminary agreement for $8.5 billion in grand and loans up to $11 billion. This funding the requirement to be used in order to build two new Intel factories and also improve an already existing one.
It’s important to mention that the funding is part of the Chips and Science Act of 22, which aimed to boost domestic semiconductor production by about $52.7 in funding, which include also $39 billion in subsidies for the overall semiconductor production and $11 billion in order to make researches and developments for the industry.
The government’s decision for Intel cuts for the grant is coming after the Intel chip manufacturer postponed some of the already planned investments in chip facilities in Ohio, and now plans to complete this project by the end of the decade instead of the initial ending in 2025. Intel AI chips company has indeed faced pressure to have some Intel cuts in costs due to its largest quarterly loss in 56 years.
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Recently, Intel’s businesses faced some challenges due to the fact that the company’s sales recorded a loss of 6% in the recent quarter. Also, the AI chip maker is now in the process of cutting about 15,000 jobs.
However, the Chip manufacturer states that the next revenue record will most likely surpass the analyst expectations of $13.3 billion and also the shares will record an increase of almost 12%.
By
Alice Brasoveanu
•
November 25, 2024 8:10 AM
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