Intel’s Gelsinger is frustrated with slow CHIPS payouts. Intel is supposed to be receiving $8.5 billion in direct funding with more incentives on top of that cash. $8.5 billion is no joke. I mean it isn’t huge compared to the cost of a modern fab but it’s still something.
I’m not sure what sort of schedule Intel and the government were supposed to be on or what the schedule looks like now that the government is suspicious of Intel. I’m sure it has changed multiple times because well that’s the government for you. I’d probably be frustrated too.
“My simple message is, ‘Let’s get it finished,’” said Gelsinger in an interview. “There’s been renegotiations on both sides.” The U.S. government put some objectives between CHIPS Act recipients and their money, with milestones including completing building projects, securing customers, etc. “Obviously, with elections, you know, nigh in front of us, hey, we want this done,” said Gelsinger, with the possibility of a new presidential regime lighting a fire of urgency.
This reticence to give out CHIPS Act funding right away apparently stemmed from fears from the government that Intel specifically would not meet its promises. “[There is fear that] Intel is going to take chips money, build an empty shell of a factory and then never actually open it, because they don’t have customers,” said former Commerce Department official Caitlin Legacki.
But you know what, here’s an idea, stop firing US workers. The whole general idea of the CHIPS Act was to expand US manufacturing of semiconductors. Maybe if you hired instead of fired the Federal Government would be happier with you. And maybe if you had created a more appropriate and realistic fab building schedule the government would not be looking askance at you right now.
The whole thing is silly really. Intel shouldn’t have fired everyone it possibly could and the government really shouldn’t be delaying cash it has already promised. But that’s what politics get you! Inside Intel and the Federal Government, it’s all politics…