Intel Agrees to Terms, Will Receive Up to $7.9 Billion in CHIPS Funding | Global News Avenue

Intel(international trade center) and the Biden administration have finalized terms of an agreement that will see the chipmaker receive up to $7.86 billion CHIPS Act Fundingdown from the $8.5 billion preliminary deal originally announced in March.

The funding will go to Intel’s existing and yet-to-be-built factories in Arizona, Ohio, New Mexico and Oregon, and fuel Intel’s plans to invest nearly $100 billion to expand its U.S. operations. The Commerce Department said the funding will be awarded as Intel achieves milestones on different projects the Commerce Department said on Tuesday.

The financing package is smaller than the initial agreement of up to $8.5 billion Announced in March The company said this is because Intel participates in a separate defense-related program that also provides CHIPS funding.

CHIPS funding could help Intel turn a profit

The funding will also help CEO Pat Gelsinger Plan to turn around Intel The chipmaker and its stock have disappointed multiple times this year. Last month, he said the company had made “solid progress” in its efforts so far but acknowledged that “there’s still a lot of work to do” ahead.

Intel Stock prices plummet this year As chipmakers say behind Its semiconductor rivals post bigger-than-expected losses second quarter And announced plans to lay off 15% of its employees. The share price has also received some positive news this year, including potential takeover bid, sales volume Some assetsand Other investments.

However, Bloomberg It was reported on Tuesday that Qualcomm (Qualcomm) interest in a potential acquisition of Intel has faded. some analysts once called this idea “Perhaps impractical” because of Intel’s massive debt and the government hurdles the deal would have to clear.

Commerce Department officials said more final CHIPS Act funding deals could be announced in the coming weeks as the Biden administration works to finalize as many deals as possible ahead of the presidential transition process in January. wall street journal reported.

Intel shares were up more than 0.7% on Tuesday morning at about $25.05, having lost half their value since the start of the year.