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financial associated press, september 27 (editor ma lan)intel is working hard to save itself. in addition to the major business adjustments announced in the middle of this month, the company has also recently reported news that it may be acquired by qualcomm.

however, most analysts on wall street believe that intel still prefers to conduct its own business and is unlikely to accept qualcomm's acquisition invitation. the latest news is that the u.s. government is negotiating to provide intel with a financial grant of us$8.5 billion and a loan of us$11 billion, which may provide intel with an important capital boost.

according to people familiar with the matter, the white house may finalize the funding plan before the end of the year, and negotiations have entered an advanced stage. any acquisition of all or part of intel's business may derail delicate negotiations.

another person familiar with intel pointed out that due to the proximity of the us election, the white house may be eager to implement this project, and it would not be surprised if the subsidy is confirmed before the november election.

this will be the largest single subsidy granted by the u.s. chip act. the u.s. government hopes to support local chip companies in the united states through a series of financial assistance and attract overseas investors at the same time. this bill is also the political achievement that the biden administration is most proud of.

a mutually beneficial transaction

in march of this year, biden visited intel's factory in arizona, usa, and vigorously promoted this temporary financing agreement. the white house said the deal would bring 3,000 manufacturing jobs and 7,000 construction jobs to arizona, a key swing state in the election.

in addition, as the uncrowned king of the u.s. chip industry for many years, intel also has special representative significance for the united states. u.s. secretary of commerce raimondo once called intel a champion semiconductor company. g dan hutcheson of techinsights pointed out that part of the purpose of the chip bill is to ensure that companies such as intel are american companies supported by the u.s. government.

as a gesture of goodwill to the u.s. government, intel emphasized in its transformation statement in the middle of this month that it would not suspend all investments in the united states, but would instead cancel its expansion in germany, poland and malaysia.

if intel can successfully obtain this grant from the white house, it will be possible to give it another try in the chip foundry business and try to turn bicycles into motorcycles without splitting or selling it due to financial pressure.

intel itself still has high hopes for its chip foundry business, which continues to lose money. earlier this month, intel announced that its most advanced 18a chip manufacturing plant had secured amazon as a major customer. this week, intel stepped up again and released two ai chips. although they are weaker in performance than nvidia's h100, they are extremely advantageous in terms of cost.

this means that intel still has the ambition to compete with the world's top oems, and this ambition is currently in urgent need of funds to sustain it.