The US governments chip subsidy plan has encountered new problems. According to internal sources, the Pentagon has revoked the $2.5 billion in chip production funds originally earmarked for Intel, and it is now the responsibility of the Department of Commerce. This move not only reveals the possible lack of funds in the US chip industry support plan but may also affect Intels future subsidy amount.
It is understood that Intel had expected to receive more than $10 billion in support from the US governments chip plan to promote the production of advanced semiconductors for use in the US defense and intelligence fields. In the original plan, the US Department of Defense promised to provide Intel with $3.5 billion in funds, of which $2.5 billion came from the Department of Defense and another $1 billion was provided by the Department of Commerce.
However, according to sources, the Department of Defense cancelled this part of the funding commitment to Intel at the last moment, shifting the financial pressure to the Department of Commerce. This change may not only weaken Intels position in obtaining government funding but also exposes the financial difficulties faced by the US government in promoting its chip strategy.
The US Department of Commerce pointed out in a statement that no final decision has been made on the funding subsidy for security - related chip production, and relevant reviews and evaluations are underway. This statement by the Department of Commerce further increases the uncertainty of the chip industry support plan.
In addition, Commerce Secretary Gina Raimondo had previously warned of a lack of funds. She mentioned that although the Department of Commerce has a budget of $39 billion, more than 600 companies have applied for federal funds, far exceeding the available funds for distribution. This indicates that many potential projects may not receive the necessary financial support.
For Intel, this change means that its investment plans in the defense and commercial fields may need to be re - evaluated. Although Intel may still receive support from the Department of Commerce, the total subsidy amount it finally receives may be less than expected.
The US governments investment in the chip industry is to enhance the self - sufficiency of the domestic industrial chain and reduce dependence on external supply chains. However, the current shortage of funds seems to be challenging the implementation of this strategy.
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