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The big picture: It's been nearly six months since Intel was chosen to receive a significant chunk of funding from the landmark Chips and Science Act, but the chipmaker has yet received a dime. Some close to the situation are now wondering when – or if – Intel will ever see the money.
Intel is on track to receive $8.5 billion in grants as well as $11 billion in low-interest loans through the government program. The funding is contingent upon meeting specific milestones and will come only after the government has done substantial due diligence, which could be part of what's slowing down disbursement.
Sources familiar with the subject told Bloomberg that Intel is frustrated with what it views as the government "dragging its feet," and wants them to expedite funding. They also claim Intel has been hesitant to share certain information with the Commerce Department, the division of the government that oversees Chips Act funding.
In a statement to the publication, Intel said it is making significant progress on projects in Arizona, New Mexico, Oregon, and Ohio, adding that they look forward to finalizing their funding agreement soon. The Commerce Department declined to comment on the matter.
Intel has been under significant pressure as of late, and a disastrous earnings report delivered last month didn't help matters. Shares in Intel have plummeted more than 34 percent since the report, reaching levels not seen in more than a decade.
In an effort to cut costs, the chipmaker announced a $10 billion cost reduction plan that includes eliminating thousands of jobs. Team Blue is also reportedly considering more extreme measures including separating certain divisions. Mergers and acquisitions are even said to be on the table at this point.
Just this week, rumors surfaced claiming Qualcomm was mulling a decision to purchase parts of Intel's chip design business. With a market cap of nearly $185 billion, Qualcomm no doubt has the financial ability to make something happen.
Sources told Bloomberg that Intel will consider what comes next during a board meeting later this month.