Intel’s Struggles: Why the US Government Is Not the Savior
Why the US government is not the savior Intel needs as its foundry struggles deepen despite new funding moves.
Matilda
Intel’s Struggles: Why the US Government Is Not the Savior Why the US government is not the savior Intel needs The headlines may sound bold, but why the US government is not the savior Intel needs has become painfully clear. Last week, the Trump administration announced plans to convert money Intel was expecting through Biden-era grant programs into a 10% equity stake. Image Credits:Alex Wroblewski/Bloomberg / Getty Images The move was unprecedented and confusing. It also raises serious questions: Will this government intervention actually fix Intel’s deeper problems—or just buy the company more time? A risky government bet on Intel The idea of converting federal grants into equity ownership is not only unusual, but also unclear in its legality. Even if the move goes through, it won’t solve Intel’s most pressing challenge: its failing foundry business. Intel Foundry, created to manufacture semiconductors for outside companies, has struggled to gain traction. Despite ambitious goals, it has lost major contracts—Reuters reports Sony walked away—and t…
