US officials consider government intervention if Intel cannot get its finances in order
US officials may intervene to support Intel amidst financial struggles and delays from CHIPS Act funds.
Intel is dealing with financial hardships and anticipates receiving billions through the CHIPS Act, though concerns about the delayed disbursement persist. US policymakers, including Senator Mark Warner, are considering additional measures if Intel's financial position worsens, reflecting the corporation's strategic importance to national security due to its local chip production.
One proposed solution is merging Intel's design division with competitors such as AMD, Samsung, Marvell, or Qualcomm. However, this approach mirrors past strategic errors, like AMD's division of its manufacturing branch, leading to skepticism from former Intel CEO Craig Barrett regarding the potential adverse impacts on research and development.
Intel's leadership, including CEO Pat Gelsinger, is resisting merger plans, instead focusing on internal recovery efforts such as introducing the 18A chip, pivotal for competing with TSMC. The U.S. government wishes to avoid another taxpayer-funded rescue but hasn't ruled out subsidies, testing the balance between innovation, security, and market freedom.