Intel is close to securing $8.5 billion in direct funding from the U.S. government, with finalization expected by the end of 2024, according to a report from the Financial Times.
This funding is part of a larger initiative under President Biden’s $20 billion grant and loan package to boost domestic semiconductor production. The money will help Intel build two new factories and modernize existing facilities in Arizona.
The talks, while advanced, are not yet guaranteed to conclude this year. Intel is also facing potential acquisition interest from Qualcomm amidst its struggles to keep up with competitors like TSMC, Nvidia, and AMD in the rapidly growing AI chip sector.