Posted on 03/13/2024 8:49:00 AM PDT by ChicagoConservative27
The Pentagon’s surprise decision to withdraw $2.5 billion in funding for Intel’s semiconductor manufacturing plans has created a significant shortfall in the company’s expected incentives under the CHIPS Act.
Bloomberg reports that the semiconductor industry’s path to revitalization has hit a snag as the Pentagon abruptly scrapped its plan to contribute $2.5 billion toward Intel’s chip manufacturing grant under the CHIPS Act. This move has disrupted the distribution of funds from the legislation, leaving the Commerce Department scrambling to fill the substantial funding gap.
According to people familiar with the matter, the Pentagon’s withdrawal occurred in the days leading up to a government funding deadline, forcing lawmakers to redirect the Commerce Department to reallocate other CHIPS Act funds to make up the $2.5 billion shortfall. This change could potentially mean a greater portion of Intel’s incentives will be devoted to military and intelligence-related chip production, rather than commercial purposes.
(Excerpt) Read more at breitbart.com ...
Now we know where the creative accounting finds more money to shove at Ukraine.
Everyone is looking for someone else's buck to spend.
Either that, or a competitor to Intel is promising 10% for the Big Guy.
They recently “found” $300M to give to Ukraine. I wonder where that money came from?
Well, the money for Ukraine had to come out of someone’s bucket.
The competition pissed off Biden’s China overlords...
Go find a mirror.
I think this is retaliation for Intel cancelling its US plant plans after seeing the DEI requirements companies must adopt to get the grants.
There was an article yesterday saying the “CHIPS” act is a huge bust because it has all sorts of onerous requirements for companies going WOKE and they want nothing to do with that. It predicted that nobody would take the money. The Pentagon was probably told that so they made it appear they are pulling the money back when in reality Intel said FU.
Exactly right. That’s what I wrote 15 minutes after you (I didn’t read your comment first).
It might be retaliation or it might be that the government doesn’t want the embarrassment of companies refusing their money so they took the initiative to cancel the grant (loan?).
now if they were UNION...
Intel failed to give the rats their ends and this is probably a payoff to China. After all the ChiComs played a big part in the 20 steal and it’s time for another one.
From what I’ve been reading, the CHIPS Act money was not finding many takers, anyway. Withdrawing a contribution from a fund that no one wants to use due to the onerous strings attached isn’t likely to be a game changer.
A Ponch in the gut, to be sure [old-guy CHiPS reference]
“”Now we know where the creative accounting finds more money to shove at Ukraine.””
Who knew they could move money around like pieces on a chess board?
Must remember that - CREATIVE ACCOUNTING....only the government!
For those who don’t know, an advanced fab 5nm fab costs around 5B to build and get up and running.
I bet this was for the Intel Ohio plant.
They already bought out Global Foundries, now they don’t need Intel.
Intel got stabbed twice with DIE before it was DEI.
Once around 2002 and the other when Obummer took charge.
DIE nearly sank the company.
Pat Gelsinger is doing a good job bringing it back from the abyss but one man can’t do it alone.
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