Intel’s CHIPS Act subsidy reduced due to manufacturing delays and operational losses increasing

Challenges in funding and setbacks in strategy

As Intel faces setbacks in completing its chip manufacturing project in Ohio, the target year has been extended from 2025 to the latter part of the decade. This lag, combined with ongoing obstacles in keeping up with the technological advancements of competitors like Taiwan Semiconductor Manufacturing Company (TSMC), has weakened trust in the company’s capacity to fulfill its obligations.

“The postponement in Intel’s investment is particularly worrisome considering the current uptick in chip demand, fueled by the growth of AI,” stated Rachita Rao, a lead analyst at Everest Group. “With AI revolutionizing the sector, existing IT systems are proving inadequate to manage its processing needs.”

Intel’s challenges have emerged as the Biden administration aims to diminish the reliance of the United States on Asian supply chains under the CHIPS Act, a $39 billion initiative intended to enhance domestic chip production. In March, President Joe Biden emphasized Intel’s role in reshaping the semiconductor sector during a prominent visit to Arizona.

About Author

AndyC

Andy Curtis is an award-winning security consultant, researcher and public speaker. He has been working in the computer security industry since the early 1990s, having been employed by state and federal government, leading healthcare and banking providers across three continents. He has given talks about computer security for some of the world’s largest companies, worked with law enforcement agencies on investigations into hacking groups, and is a regular voice on TV and radio explaining IT security threats.

See author's posts