Intel confirmed this week that it will receive a total of $3 billion in U.S. subsidies to supply chips based on its 18A technology to the Department of Defense. The investment is part of the CHIPS Act but is separate from the $8.5 billion that was previously promised to the company.
As a huge national company capable of developing and manufacturing its own technologies, Intel has a long-standing partnership with the US military. The timing of this latest investment, however, should be especially opportune for the company.
In addition to the obvious cash flow advantage in a time of crisis, the approval of the subsidies also impacts the credibility of the 18A process. Intel Foundry has been promoting the technology with hopes of manufacturing not only its own chips, but also for other companies. The approval of the US military should help in marketing the project.
“Intel is proud of our continued collaboration with the U.S. Department of Defense to help strengthen America’s defense and national security systems,” said Chris George, Intel executive. “Today’s announcement underscores our unified commitment with the U.S. government to strengthen the domestic semiconductor supply chain to ensure the United States maintains its leadership in advanced manufacturing, microelectronic systems and process technology.”
Intel receives investment while waiting for more investment
The $3 billion infusion from the U.S. government should help Intel wait out the rest of its CHIPS Act funding. The company is rumored to be growing frustrated with the government’s slow release of its $8.5 billion in subsidies and $11 billion in loans.
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Speaking of rumors, it’s also interesting that the 18A process has been approved by the US military, because unofficial information is circulating on the internet saying that Broadcom rejected the technology. Even if the rumors prove to be true, the approval of the US Department of Defense should help to clear the image of the technology.
Now we have to see if the army money will be deposited into the account faster than the money to build more factories.
Source: Tom’s Hardware
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Source: https://www.adrenaline.com.br/intel/intel-recebe-us-3-bilhoes-para-fornecer-chips-18a-ao-exercito-dos-eua/
