Discussion on further assistance and even a split plan, the U.S. is concerned that Intel's troubles are far from over
Concerns about Intel are growing in the U.S. Capitol, and lawmakers have been secretly discussing how to further assist Intel. One option is to merge Intel's chip design business with competitors like AMD or Marvell
Facing operational difficulties and being removed from the Dow Jones, Intel's troubles are far from over, and concerns in Washington are growing day by day.
According to media reports on Tuesday, insiders revealed that there is increasing concern among U.S. lawmakers regarding Intel's operational status. Congressional members have been secretly discussing how to further assist Intel, which has previously received (at least) billions of dollars in aid from the (Biden) administration.
Intel's latest strong quarterly earnings have provided it with some breathing room, but if Intel's financial situation continues to deteriorate, Washington's concerns could turn into potential backup options.
Insiders stated that top officials at the U.S. Department of Commerce, responsible for overseeing the funding related to the CHIPS Act, and lawmakers like Mark Warner, who led the legislation in the Senate, have discussed whether Intel needs more assistance. This discussion is precautionary, indicating that Intel's strategic importance cannot be overlooked and that it must not be allowed to fall into serious trouble. The U.S. is seeking a leading company in the semiconductor field to ensure its supply chain.
Insiders further indicated that one option is to merge Intel's chip design business with competitors like AMD or Marvell, led by the private sector, while possibly receiving government support. However, the U.S. government is not very interested in a bailout plan similar to the direct investments in automakers and banks in 2008, as policymakers are concerned that a continued decline in Intel's sales could lead to losses.
As Intel continues to struggle, its stock price has been on a downward trend, falling nearly 3% on Monday and down 53% year-to-date.