Intel Chips Act money delayed by officials

[XYang2023]

Intel Chips Act money delayed by officials

A disconnect between US bureaucracy and Intel has put the main purpose of the US Chips and Science Act in jeopardy. The most important goal of the Act was

www.electronicsweekly.com

Intel should walk away from government bureaucracy.

 

[bashee_wang]

Typical. It's not easy to get money from any government on this planet.

 

[hist78]

Intel Chips Act money delayed by officials

A disconnect between US bureaucracy and Intel has put the main purpose of the US Chips and Science Act in jeopardy. The most important goal of the Act was

www.electronicsweekly.com

Intel should walk away from government bureaucracy.

Not exactly. Intel just need to be truthful and creditable. So far Intel failed on both.

On March 20, 2024 Commerce Department announced $8.5 billion grants and $11 billion loan plus tax credit will be given to Intel for several fab expansion projects. In the Intel's application, it calmed 10,000 manufacturing jobs and 20,000 construction Jobs will be created in the next five years.

Less than 5 months later on August 1, 2024, along with a very bad quarterly earnings report, Intel announced to cut Capex and expense, possible more then $10 billion, and layoff 15,000 to 19,000 employees.

Does Intel leadership really know the true situation of Intel? Intel started 56 years ago and had $54 billion 2023 revenue, but it behaved more like a startup that business can swing up and down faster than anyone can imagine.

Either Intel didn't tell the truth in the application back in the March 2024 or Intel has no clue on Intel itself, Intel needs to explain it to the Commerce Department.

 

[XYang2023]

Not exactly. Intel just need to be truthful and creditable. So far Intel failed on both.

On March 20, 2024 Commerce Department announced $8.5 billion grants and $11 billion loan plus tax credit will be given to Intel for several fab expansion projects. In the Intel's application, it calmed 10,000 manufacturing jobs and 20,000 construction Jobs will be created in the next five years.

Less than 5 months later on August 1, 2024, along with a very bad quarterly earnings report, Intel announced to cut Capex and expense, possible more then $10 billion, and layoff 15,000 to 19,000 employees.

Does Intel leadership really know the true situation of Intel? Intel started 56 years ago and had $54 billion 2023 revenue, but it behaved more like a startup that business can swing up and down faster than anyone can imagine.

Either Intel didn't tell the truth in the application back in the March 2024 or Intel has no clue on Intel itself, Intel needs to explain it to the Commerce Department.

I don't think it works like that. They need to trim their workforce to be competitive. The market is dynamics not rigid.

Change the CEO. Drop the fabs. Walks away from the government bureaucracy. Start competing with other companies. Be aggressive.

 

[bashee_wang]

I don't think it works like that. They need to trim their workforce to be competitive. The market is dynamics not rigid.

Change the CEO. Drop the fabs. Walks away from the government bureaucracy. Start competing with other companies. To aggressive.

If intel could do what your suggested, it might be good. But don't forget the reason Lip-Bu Tan resigns from the board is "bloated workforce, risk aversion, and lagging AI strategies"

 

[siliconbruh999]

Should have removed dividends 2 years ago

 

[XYang2023]

Should have removed dividends 2 years ago

I think PG should take responsibility and step down for underestimating the risks/costs of his strategy.

 

[kevin01]

Should have removed dividends 2 years ago

After cutting dividend to $0.125 quarterly, its annual expense was ~$2B, actually not that significant in the whole scheme of things.

It is really the revenue decline which caught Intel management off the guard.