Intel's CHIPS Act Funding Cut By Over $600 Million (engadget.com) 25
The Biden administration is reducing Intel's CHIPS Act award by over $600 million, citing a $3 billion military contract the chipmaker was also awarded. Engadget reports: Initially set to receive $8.5 billion from the domestic silicon production bill, the company will get up to $7.85 billion instead. On Tuesday, The New York Times reported that Intel has extended some plant openings beyond 2030 government deadlines. Intel posted its biggest-ever quarterly loss last month after announcing 15,000 layoffs in August. The chip-maker's struggles have reportedly led some government officials to worry about its ability to deliver as a central component of the Biden White House's CHIPS Act.
Intel will receive at least $1 billion in CHIPS Act funding before the end of the year. The company plans to invest $90 billion in the US by the decade's end, a reduction from its initial goal of $100 billion in the next five years. The Commerce Department said the chip maker is still on schedule to invest the full $100 billion on projects in four states: Arizona ($3.94 billion), Oregon ($1.86 billion), Ohio ($1.5 billion) and New Mexico ($500 million).
Intel will receive at least $1 billion in CHIPS Act funding before the end of the year. The company plans to invest $90 billion in the US by the decade's end, a reduction from its initial goal of $100 billion in the next five years. The Commerce Department said the chip maker is still on schedule to invest the full $100 billion on projects in four states: Arizona ($3.94 billion), Oregon ($1.86 billion), Ohio ($1.5 billion) and New Mexico ($500 million).
okay... (Score:4, Insightful)
reducing Intel's CHIPS Act award by over $600 million, citing a $3 billion military contract the chipmaker was also awarded.
Great... it sounds like someone in government is paying attention and handling the money properly. Regardless of your agreement with the CHIPS act, the people watching over the money are paying attention to the companies receiving funds.
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Or someone is paying attention anyway. More than likely an Intel competitor
Heh, good point. I'll take whatever oversight I can get to keep government slightly less corrupt.
Transplant (Score:1, Troll)
Re: Transplant (Score:4, Insightful)
You don't just 'move' a chip fab across the Pacific Ocean... this isn't a loom or a steel press.
So your idea is, to prevent China taking over the Fabs in Taiwan, the Taiwanese Govt should let TSMC relocate in America? I suspect TSMC is a fairly significant part of their economy...
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You don't just 'move' a chip fab across the Pacific Ocean
Why not? It's not like they built that equipment on-site. It was shipped from somewhere, the Netherlands, the US, Japan...
to prevent China taking over the Fabs in Taiwan
No. A hammer is all you need for that. The whole point of CHIPS is to increase production in the US. Pay attention.
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TSMC already has a working fab in the US [qz.com] and more to come.
Even if the machinery can be moved, it takes time and money to dismantle something so big and complex like a chip fab. It makes much more sense to build a new fab at the new site, using new and better machinery. All this while the old fab keeps running, helping finance the new one. Then maybe over time, it becomes financially sensible to dismantle the old fab.
The CHIPS Act is one thing, the threat of China taking over Taiwan is another. I'm sure
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Yes , this is a significant part of Taiwan's economy. Remove the technology makes Taiwan less attractive. Bold action is called for in the face of coming war.
This is the economic equivalent of a victim of sexual abuse not showering to make themselves less attractive to their abuser. Taiwan, for now, is a democracy. Good luck convincing voters to impoverish themselves to appease China.
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Re: What kind of government funding is this? (Score:4, Informative)
You, as a taxpayer will see no benefit, unless the island of Taiwan is taken over by the Chinese Gov't - then the benefit will be the availability of chips.
The U.S. Gov't is simply handing Intel, TSMC, and others billions of federal grants (free money) and billions in subsidized (below market interest rate) loans for the commitment to build Chip Fabs on US soil.
Not tax breaks, actual free money and cheap loans - apparently, the fact that Chip Fabs are money-printing machines and their owners have no problem borrowing money to build Chip fabs, this administration committed to give them free money because, a couple years ago, during Covid, it was had for US companies to get chips, so Dems promised billions and got to look generous (with our money).
When Intel was promised some $10 billion dollars, they said thank you, and said the money was not going to change their plans. They would build just as many Chip fabs as they planned before the CHIPS act, but now they would be billions less to build.
Re: What kind of government funding is this? (Score:2)
But is it below the government's effective rate like, say, the 30-year Treasury bond rate when those loans were funded? I know that it can still meet the broad definition of "subsidy" in either case, but if not, it's hard to put a non-speculative price tag on it. Certainly necessary to know if you want to know whether it is also "free money."
Kinda like the student loan thing- adjustments affect revenue, sure, but it only "costs the taxpayer" if the
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Well, if Trump withdraws from the Pacific region, which he has threatened to do as part of a whole pile of NATO reforms, China will take over Taiwan sometime in 2028 or 2029.
China has been amassing firepower in the region, and is basically waiting for the US to withdraw so they could take over Taiwan.You can bet when the US withdraws, China will invade i
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Re: What kind of government funding is this? (Score:2)
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Well... (Score:3)
... Intel shows no sign of seriously working on bringing chip production back to the US, and their abysmal track record on security, reliability, and performance makes me wonder whether the money might not be better spent on competent manufacturers
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That's what they're doing.
Go Oregon! (Score:2)
Oregon's having a bukkake party and all the corporations are invited! Let's all rush a session to order and start a sales tax to match the federal funds and give it to Intel condition free! You too Washington County, waive those property taxes, no jobs required! We also love the new orgiarium at the fancy golf course out there. Intel makes good use of it, Nike too, and Oregon's always tricking there. She'll pay you. For reals.
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lol, you sound like one of my former coworkers at Jones Farm.
Maths (Score:2)
The Commerce Department said the chip maker is still on schedule to invest the full $100 billion on projects in four states: Arizona ($3.94 billion), Oregon ($1.86 billion), Ohio ($1.5 billion) and New Mexico ($500 million)
Hence 3.94 + 1.86 + 1.5 + 0.5 = 100? Was that computed using an Intel chip?