Policymakers in Washington have grown worried enough about chipmaker Intel to begin quietly discussing scenarios should it need further assistance, beyond the billions in government funds the company is already slated to receive, people familiar with the matter said.
A strong quarterly earnings outlook yesterday bought the company breathing room with investors, but abstract concerns in Washington have turned into potential backup options, should Intel’s finances continue to deteriorate.
Top officials at the Commerce Department, which oversees implementation of the CHIPS Act funding to reinvigorate American chip production, and members of Congress including Sen. Mark Warner, one of the law’s leading champions, have discussed whether the company needs more help, the people said.
The talks, which the people described as purely precautionary, show that Intel is seen as too strategically important to be allowed to fall into serious trouble. The US is seeking a national champion in the semiconductor space to ensure its own supply chain and as a counterweight to China, where manufacturing for global chips has moved.
If Intel is so strategically important, then eminent domain it now while the stock price is in the toilet. No, just print money for a private company instead, which it’ll then use for stock buybacks to make the rich richer?