American lawmakers have quietly been discussing options on how they could help Intel get back on its feet should its financial situation deteriorate. According to a
Semafor report, sources say this possible rescue package will be above and beyond the scope of the CHIPS Act, which would
award the company at least $8.5 billion before the end of 2024.
It should be noted, though, that these are just precautionary discussions of backup plans in case the company folds. After all, the company had reported a strong outlook on its third quarterly earnings call for 2024.
These discussions show how much Washington, D.C. values Intel, primarily as the U.S. competes with China for global dominance in advanced technologies. Although both AMD and Nvidia, semiconductor giants in their rights, are also American companies, Intel is the only one that both designs
and manufactures chips. “Intel is the only American company that designs and manufactures leading-edge chips and is playing a critical role in enabling a globally competitive semiconductor ecosystem in the U.S.,” said an Intel spokesperson to Semafor.
If Intel were to fail, the U.S. would have to rely on TSMC and Samsung to make its most advanced chips. Even though both of these companies already have fabs in the U.S., they only provide a fraction of their total output. Furthermore, although both companies have headquarters based in allied countries, South Korea and Taiwan are at risk because of their proximity to China.
Another reason why the Capitol and the White House wouldn’t want to see Intel fail is because it’s one of America’s top exporters, with its export revenue in 2023 exceeding $40 billion. Aside from that, the company is also
working with the Pentagon’s Secure Enclave program to build leading-edge chips for the military, making it crucial for the country’s economy and
security. It’s also a major employer — even though it’s in the process of laying off over 16,000 people, it still has over 120,000 employees on its payroll.
