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Intel's Open Source Future in Question as Exec Says He's Done Carrying the Competition

An anonymous reader shares a report: Over the years, Intel has established itself as a paragon of the open source community, but that could soon change under the x86 giant's new leadership. Speaking to press and analysts at Intel's Tech Tour in Arizona last week, Kevork Kechichian, who now leads Intel's datacenter biz, believes it's time to rethink what Chipzilla contributes to the open source community. "We have probably the largest footprint on open source out there from an infrastructure standpoint," he said during his opening keynote. "We need to find a balance where we use that as an advantage to Intel and not let everyone else take it and run with it." In other words, the company needs to ensure that its competitors don't benefit more from Intel's open source contributions than it does. Speaking with El Reg during a press event in Arizona last week, Kechichian emphasized that the company has no intention of abandoning the open source community. "Our intention is never to leave open source," he said. "There are lots of people benefiting from the huge investment that Intel put in there." "We're just going to figure out how we can get more out of that [Intel's open source contributions] versus everyone else using our investments," he added.

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Intel's Next-Generation Panther Lake Laptop Chips Could Be a Return To Form

Intel today announced its Panther Lake laptop processors, consolidating the confusing split between Lunar Lake and Arrow Lake chips that define its current generation. The new processors use a unified architecture across all models instead of mixing different technologies at different price points. Panther Lake comes in three configurations. An 8-core model targets mainstream ultrabooks. A 16-core version adds PCI Express lanes for gaming laptops and workstations with discrete GPUs. A third 16-core variant with 12 Xe3 graphics cores aims at high-end thin-and-light laptops without dedicated graphics cards. All three chips use the same Cougar Cove P-cores, Darkmont E-cores, and Xe3 GPU architecture. They share an NPU capable of 50 trillion operations per second and identical media encoding capabilities. The main differences are core counts and I/O options rather than fundamental architectural variations. The approach contrasts with Intel's current Core Ultra 200 series. Lunar Lake chips integrated RAM on-package and used the latest Battlemage GPU architecture but were mostly used in high-end thin laptops. Arrow Lake processors offered more flexibility but paired newer CPU cores with older graphics and an NPU that did not meet Microsoft Copilot+ requirements. Intel claims Panther Lake delivers up to 10% better single-threaded performance than Lunar Lake and up to 50% faster multi-threaded performance than both previous generations. The GPU is roughly 50% quicker. Power consumption drops 10% compared to Lunar Lake and 40% versus Arrow Lake. The chips use Intel's 18A manufacturing process for the compute tile. TSMC fabricates the platform controller tile. Intel said systems with Panther Lake processors should ship by the end of 2025.

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Intel entame la production de processeurs sous gravure 18A

Intel confirme que sa technologie de gravure « 18A » est déjà en production dans son usine phare d’Arizona. Regroupant les unités 52 et 62, ce groupe industriel a reçu des crédits quasi illimités depuis 2021 avec une ligne budgétaire de 32 milliards de dollars instiguée par l’ancien PDG de la boite : Pat Gelsinger.

L’idée était de tout faire pour permettre à la marque de rattraper le retard accumulé face à son concurrent AMD. Se mettre à niveau technologiquement, conceptuellement et architecturalement en s’offrant notamment un outil de production à la fois puissant, extrêmement précis et fiable. Les déboires connus par les usines d’Intel boiteuses face à la production de certaines gammes de puces ayant couté fort cher au fondeur.

Aujourd’hui, les nouvelles semblent bonnes avec une Fab 52 qui produit déjà des wafers en 18A et pourrait arriver à une production de 1000 à 5000 wafers chaque mois à elle seule d’ici la fin de l’année. Avant de basculer sur une production de 15 à 30000 en 2026. De quoi lancer la production des prochains Core. Dont la génération Panter Lake attendue pour une présentation officielle dans les jours prochains. Les puces pourraient être présentes en petites quantités pour les fêtes de fin d’année et apparaitre en masse dès l’année prochaine.

Le 18A n’est pas qu’une finesse de gravure, c’est tout un ensemble de technologies qui devraient avoir deux effets majeurs pour la société. D’abord de pouvoir produire des puces plus rapides et moins gourmandes. Ensuite, la technologie pourrait largement séduire d’autres acteurs du marché qui chercheraient à faire graver leurs puces par Intel. On pense évidemment à Nvidia qui vient d’injecter énormément d’argent dans la structure.

Le 18A est vu comme une évolution technologique majeure pour Intel, un ensemble qui va bien au-delà de la simple finesse de gravure. Un des points clés est PowerVia. Un nom qui désigne un brevet permettant une alimentation différente du processeur. Aujourd’hui, les signaux et l’alimentation d’un processeur passent par le même chemin, ce qui pose de nombreux problèmes de fiabilité, de conception et de fabrication. Les transistors sont alimentés en énergie et transmettent leurs calculs par des chemins qui se longent. Un des atouts du 18A est d’utiliser une alimentation cheminant de l’autre côté du passage de l’information. Une fois maitrisée, cette technologie « backside power » permettra de meilleures performances, un argument consommation et une baisse du prix de revient des puces.

Autre bouleversement technique important, la mise en place du RibonFET GAA ou Gate-All-Around. Un nom barbare qui recouvre une technologie de transistors permettant de contrôler extrêmement finement l’usage du courant électrique. Ce courant qui traverse le transistor et qui est responsable de l’efficacité des calculs au sein des processeurs. Cette technologie permet non seulement de miniaturiser encore plus les divers éléments de chaque puce, mais également de réduire la consommation énergétique de l’ensemble. Cela permet de créer des puces plus denses et évite des tensions pouvant amener à des fuites de courants et donc des rejets de circuits. 

Ces améliorations seront conjuguées avec la dernière version de la technologie Foveros Direct qui permet d’empiler les cœurs dans des technologies différentes au sein d’un même processeur. Ainsi que la technologie EMIB qui sera particulièrement utile pour mixer les composants et on pense évidemment à l’arrivée des solutions Core x86 RTX avec Nvidia. Pour rappel, c’est l’arrivée de la première génération EMIB qui avait fini par vendre la mèche de l’arrivée des puces Intel Core avec circuit graphique AMD Radeon en 2017.

Tout cela recoupe le calendrier proposé par Pat Gelsinger qui a mis en place la stratégie Intel Foundry destinée à séduire d’autres industriels pour qu’ils viennent graver leurs puces en 18A. Avec l’idée en tête de rentabiliser le coût de Recherche et développement et l’énorme investissement dans l’infrastructure des usines.

Intel entame la production de processeurs sous gravure 18A © MiniMachines.net. 2025

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AMD In Early Talks To Make Chips At Intel Foundry

"Your AMD chips may have Intel Inside soon," writes longtime Slashdot reader DesScorp. "Discussions are underway between the two companies to move an undisclosed amount of AMD's chip business to Intel foundries. (AMD currently does their production through TSMC.) The talks come hot on the heels of a flurry of other Intel investments." Tom's Hardware reports: In the past several weeks, Intel has seen a flurry of activity and investments. The United States announced a 9.9% ownership stake in Intel, while Softbank bought $2 billion worth of shares. Alongside Nvidia, Intel announced new x86 chips using Nvidia graphics technology, with the graphics giant also purchasing $5 billion in Intel shares. There have also been reports that Intel and Apple have been exploring ways to work together. The article notes that there is a trade/political dimension to an AMD-Intel deal as well: It makes sense for Intel's former rivals -- especially American companies -- to consider coming to the table. The White House is pushing for 50% of chips bound for America to be built domestically, and tariffs on chips aren't off the table. Additionally, doing business with Intel could make the US government, Intel's largest shareholder, happy, which can be good for business. AMD faced export restrictions on its GPUs earlier this year as the US attempted to throttle China's AI business.

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Intel poursuivra le développement de ses puces graphiques Arc

Intel a donc confirmé continuer à développer ses puces Arc en parallèle du développement de ses puces construites en collaboration avec Nvidia. Les Intel x86 RTX et les circuits Arc n’entrent finalement pas vraiment dans le même canal de distribution.

Je vous parlais de pragmatisme dans mon billet sur les Intel x86 RTX et c’est le maitre mot pour comprendre la situation. Aujourd’hui Intel n’arrive pas à lutter face à AMD et ses Radeon sur certains segments du marché. Des produits comme les puces Strix Halo d’AMD sont sans concurrence chez le fondeur. Chez Nvidia, les solutions RTX mobile en viennent aussi à se faire rattraper par les puces AMD. Pour proposer une alternative, Intel va donc travailler avec Nvidia comme la marque a pu travailler par le passé avec… AMD. Ce que l’on voit souvent comme un antagonisme entre des sociétés concurrentes n’est finalement que des décisions de business logiques.

Aujourd’hui la situation s’est éclaircie. Intel a d’abord indiqué continuer le développement de ses puces Arc. Leur feuille de route n’a pas changé et pour cause, ce ne sont pas vraiment les mêmes cibles que celles visées par les puces embarquées qui seront développées par la suite. Si on considère le délai nécessaire à la conception et la mise en place sur le marché des puces Intel/Nvidia, les propositions Arc ont largement leur place sur le calendrier. Il sera toujours temps de voir à terme l’état du marché lors de leur sortie.

D’un point de vue plus global, le segment des cartes graphiques Intel Arc n’est pas réellement une grosse épine dans la patte de l’éléphant Nvidia. Les parts de marché sont fiables voir souvent confondues avec la ligne du cadre des statistiques. Nvidia, de son côté, se porte très bien et fait également beaucoup d’ombre à AMD. Trop d’ombre même selon certains. Avec 94% du marché actuellement pour Nvidia contre 6% pour AMD, la survie du segment Arc est même importante pour le géant graphique. Le risque d’une plainte et d’un démantèlement pour des raisons de concurrence étant bien présent, l’existence d’un troisième larron sur ce segment est aussi une sécurité pour la marque.

Une offre d’emploi Intel ARC

Aujourd’hui, on apprend qu’Intel cherche à embaucher un ingénieur dont le rôle sera d’optimiser les compétences en jeu des futures plateformes Arc. Preuve que la marque continue bien son développement technique sur ce segment. Le plan d’Intel sur ce segment était prévu dès le départ comme une vision à très long terme. La marque savait dès le lancement de la gamme que la bataille serait perdue les premières années. Il est impossible de sortir gagnant d’un test face aux concurrents actuels sur ce marché avec si peu d’expérience.

Intel a donc deux possibilités, soit poursuivre la stratégie entamée et compter sur ses déploiements futurs pour proposer des puces plus compétentes. Il ne s’agit pas d’être forcément plus rapide que la concurrence, il suffit d’être assez rapide, efficace et abordable pour venir grignoter des parts à AMD et Nvidia sur ce segment. Soit arrêter les frais maintenant. Cela permet d’éviter des dépenses, mais couterait également des années d’investissement en pure perte sur le secteur. Intel semble avoir choisie la première voie. Celle qui consistera à proposer des puces avec Nvidia d’un côté et des puces graphiques indépendantes ayant d’autres intérêts de l’autre.

Intel poursuivra le développement de ses puces graphiques Arc © MiniMachines.net. 2025

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Intel Approaches Apple For Potential Investment Amid Struggles

Intel has approached Apple about a possible investment and closer collaboration, following recent multibillion-dollar deals with Nvidia, the U.S. government, and SoftBank to stabilize the struggling chipmaker. Reuters reports: The iPhone maker and Intel have also discussed how to work more closely together, the report said, adding that the talks are at an early stage and may not lead to an agreement. Shares of Intel closed 6% higher after the news. [...] Striking lucrative partnerships and persuading outside clients to use Intel's factories remain key to its future. Intel has also reached out to other companies about possible investments and partnerships, according to the Bloomberg News report. The reported investment from Apple would come as another vote of confidence for Intel - Apple had been a longtime customer of Intel before it transitioned to using its own custom-designed silicon chips in 2020. For Apple, which relies heavily on Intel's rival TSMC to manufacture its chips, the new partnership would allow it to diversify its chipmaking supplier base - a move that would be valuable if geopolitical risks in Taiwan worsen due to China's role in the region. It would also help Apple improve its relationship with U.S. President Donald Trump, by showing that it is investing in the United States - while much of Apple's supply chain remains international, the company has committed about $600 billion to domestic initiatives over the next four years.

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Intel Says Blockbuster Nvidia Deal Doesn't Change Its Own Roadmap

If you're wondering what effect Intel's blockbuster deal with Nvidia will have on its existing product roadmaps, Intel has one message for you: it won't. PCWorld: "We're not discussing specific roadmaps at this time, but the collaboration is complementary to Intel's roadmap and Intel will continue to have GPU product offerings," an Intel spokesman told my colleague, Brad Chacos, earlier today. I heard similar messaging from other Intel representatives. Nvidia's $5 billion investment in Intel, as well as Nvidia's plans to supply RTX graphics chiplets to Intel for use in Intel's CPUs, have two major potential effects: first, it could rewrite Intel's mobile roadmap for laptop chips, because of the additional capabilities provided by those RTX chiplets. Second, the move threatens Intel's ongoing development of its Arc graphics cores, including standalone discrete GPUs as well as integrated chips. We're still not convinced that Arc's future will be left unscathed, in part because Intel's claim that it will "continue" to have GPU product offerings sounds a bit wishy-washy. But Intel sounds much more definitive on the former point, in that the mobile roadmap that you're familiar with will remain in place.

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Nvidia To Invest $5 Billion in Intel

Nvidia has agreed to invest $5 billion in its struggling rival Intel [non-paywalled source] as part of a deal to develop new chips for PCs and data centres, the latest reordering of the tech industry spurred by AI. From a report: The deal comes a month after the US government agreed to take a 10 per cent stake in Intel, as Donald Trump's administration looks to secure the future of American chip manufacturing. However, the pair's announcement makes no reference to Nvidia using Intel's foundry to produce its chips. Intel, which has struggled to gain a foothold in the booming AI server market, lost its crown as the world's most valuable chipmaker to Nvidia in 2020. On Thursday Jensen Huang, Nvidia's chief executive, hailed a "historic collaboration" and "a fusion of two world-class platforms," combining its graphics processing units, which dominate the market for AI infrastructure, with Intel's general-purpose chips. Further reading: Intel Weighed $20 Billion Nvidia Takeover in 2005.

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Intel Talent Bleed Continues

Intel's long-time Xeon chief architect Ronak Singhal is leaving the company after nearly 30 years, marking yet another high-profile departure amid Intel's leadership churn and intensifying competition from AMD and Arm-based cloud CPUs. The Register reports: The Carnegie Mellon alum holds degrees in electrical and computer engineering, along with at least 30 patents involving CPUs. Singhal joined Intel in 1997 after spending the previous summer as an intern at Cyrix. After a year in Intel's Rotation Engineers Program, he spent the remainder of his tenure helping to develop some of the chipmaker's most consequential and, at times, controversial processors. Most notably, Singhal oversaw the core development of Intel's 22nm Haswell and 14nm Broadwell processor architectures. His innovations aren't limited to the datacenter either, with his architectural contributions playing a significant role in the success of Intel's Core and Atom processor families as well. [...] Singhal is only the latest Xeon lead to jump ship since the start of the year. In January, Sailesh Kottapalli, another senior fellow, left for Qualcomm barely a month after former CEO Pat Gelsinger's unceremonious "retirement." Even before Gelsinger's eviction, Intel's datacenter group has been something of a revolving door. Last summer Singhal's long-time colleague Lisa Spelman departed the company, eventually landing a spot as CEO of HPC interconnect vendor Cornelis Networks. Her replacement, Ryan Tabrah, lasted seven months in the role, about half as long as Intel datacenter boss Justin Hotard, who defected for the forests of Finland to lead Nokia as its new President and CEO back in April. In fact, the churn now extends all the way to the top. On Monday, Intel announced its CEO of Products, Michelle Johnston Holthaus, would be leaving the business. The move is part of a broader executive shakeup that will see former Arm engineer Kevork Kechichian take over as head of Intel's datacenter engineering group. Jim Johnson, meanwhile, will take over as head of the chipmaker's client computing group while Srinivasan (Srini) Iyengar will head up a new central engineering division.

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QNAP Qu : De nouveaux NAS sous puces Intel Twin Lake

Avec la gamme NAS Qu, QNAP va se distinguer en proposant des puces permettant de développer des capacités de calcul plus évoluées que précédemment. Ce n’est pas la première fois que la marque emploie des puces Intel même si ses précédents modèles étaient sous processeurs Celeron Jasper Lake.

Ces Celeron sortis en 2021 ne paraissent pas spécialement éloignés, pourtant la différence de performance développée entre un Twin Lake N150 et un Jasper Lake comme le N5100 est flagrante. Les QNAP Qu pourront piloter beaucoup plus de choses et en particulier de fonctions virtualisées et dockerisées.

Pour le moment, ces modèles sont testés sur le marché Chinois et je ne serais pas surpris qu’ils envahissent tous les rayons. On a vu ces derniers trimestres que de nombreux fabricants de MiniPC étoffaient leurs gammes avec des solutions proposant plusieurs éléments de stockage à la manière d’un NAS. Venant ainsi concurrencer de manière plus ou moins parfaite ce marché. La réponse de QNAP est ici assez simple, rehausser les performances de sa gamme avec un engin équipé de puces habituellement intégrées à des MiniPC.

Avec quatre, six ou huit baies et des processeurs allant du N150 au Core 3 N355, ces NAS Qu vont pouvoir proposer une alternative conforme aux attentes du public en termes de stockage réseau. D’autant qu’ils reprennent à leur compte une bonne partie des besoins classiques des MiniPC. Ici point de mémoire soudée, mais un emplacement SODIMM de DDR5 qui pourra officiellement accueillir 16 Go. Un stockage de base de 8 Go de eMMC pour un système embarqué mais également deux ports M.2 2280 NVMe PCIe Gen 3 x1 pour accueillir données, systèmes virtualisés ou accélerer les performances des disques mécaniques. Et, évidemment, de quatre à huit baies 2.5/3.5″ SATA3 pour abriter des unités de stockage.

Le reste de la connectique est commun avec un double port Ethernet 2.5 Gigabit, un USB 3.2 Type-C, deux USB 3.2 Type-A et même une sortie HDMI 2.1. A noter que le constructeur ne distribuera pas ses QNAP Qu sous forme de Barebones mais bien pré-équipés en mémoire vive. Les modèles recevront ainsi de 8 à 16 Go de DDR5 en usine.

On imagine assez facilement l’intérêt de ces solutions sur le marché. Le prix des puces Intel n’est pas élevé, leurs possibilités sont très large et une foule de solutions logicielles tournent dessus. Un Qnap Qu405 en quatre baies pourrait ainsi être proposés avec QuTS Hero, le système du fabricant sur son eMMC de 8Go et toucher le grand public. Mais ce logiciel permettra également de déployer de manière plus avancée des systèmes de containers et de virtualisation, ce qui permettra aussi bien d’installer un Windows ou un Linux sur un des SSD internes. Ou d’utiliser des solutions Docker pour d’autres outils. L’utilisateur avancé pouvant ainsi profiter d’un matériel aux finitions techniques irréprochables tout en exploitant une solution logicielle réellement sur mesures avec un système performant.

Pas d’informations quant à une disponibilité en France ni de prix pour le moment.

QNAP Qu : De nouveaux NAS sous puces Intel Twin Lake © MiniMachines.net. 2025

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Intel Ousts CEO of Products, Ending 30-Year Career

An anonymous reader quotes a report from Tom's Hardware: Intel has removed its chief executive officer of products, Michelle Johnston Holthaus, as part of a major shake-up of the executive branch of the embattled chip firm, according to Reuters. This is part of new CEO Lip-Bu Tan's plan to reshape the company under his leadership, flattening the leadership structure so he makes more of the important decisions about day-to-day operation. [...] Holthaus is the latest high-profile figure at Intel to get the axe, ending a 30-year career at Intel, but a mere 10 months in her CEO of products role, and a temporary position as co-CEO after the previous CEO, Pat Gelsinger, suddenly left in 2024. "Throughout her incredible career, Michelle has transformed major businesses, built high-performing teams and worked to delight our customers," Tan said in a statement. "She has made a lasting impact on our company and inspired so many of us with her leadership. We are grateful for all Michelle has given Intel and wish her the best." Intel has said Holthaus will remain with the company in an advisory role, but her position will not be filled by anyone else. What Intel is doing, though, is bringing in executives from elsewhere, including one who worked at Tan's previous endeavour, Cadence. Srinivasan Iyengar joined the company in June and will take on the role of head of a new central engineering division. This group will focus on developing a new custom silicon business for external customers. Although Intel's fabrication business has been one of its worst-performing in recent years, and there are still talks of it selling large portions of it, it's found a new lease of life following U.S. government investment and Bu Tan's leadership. With Iyengar's new role, though, it's possible we'll see Intel designing chips for customers, rather than merely producing them. That could see it compete against the likes of Broadcom and Marvell. With Tan pushing for a faster, leaner business overall, Iyengar will report directly to him in his new role. Intel also announced that it had acquired the services of former executive vice president of solutions engineering at Arm, Kevork Kechichian. He'll begin heading Intel's datacenter group, and brings years of experience at ARM, NXP Semiconductor, and Qualcomm.

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Intel Outspends Rivals In R&D: 28% More Than Nvidia, 156% More Than AMD

Intel shelled out $16.5 billion on R&D in 2024, outspending Nvidia by 28% and AMD by 156%, with much of the cash going into chip design, fabrication tech, and the upcoming Nova Lake architecture. "When you compare the R&D expenditures to the amount of revenue, though, the story takes on a very different look," notes PC Gamer. "Intel spent 31% of its net revenue, and 26% for AMD, but Nvidia and Samsung got by on just 10% and 4%, respectively." From the report: An analysis of research and development expenditure by TechInsights was reported by Korea JoongAng Daily, but you can get the numbers yourself by pulling up each company's 2024 financial results. For example, AMD declared that it spent $6.456 billion last year (pdf, page 1) on R&D, whereas Nvidia forked out $12.914 billion. It's worth noting that Nvidia's financial statements are numbered one year ahead of the actual period (FY 2026 is 2025 and so on). Anyway, those figures pale in comparison to how much cash Intel burned through in 2024 to research and develop chip, fabrication technologies, software, and all kinds of tech stuffâ"a staggering $16.546 billion (pdf, page 25). That's 28% more than Nvidia and a frankly unbelievable 156% more than AMD. The nearest non-US semiconductor firm is Samsung Electronics, which spent a reported $9.5 billion on R&D. That would place third, comfortably ahead of AMD, and it strongly suggests that if you have your own foundries for making chips, you need to spend a lot of cash on finding ways to make better processors.

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Intel Get $5.7 Billion Early. What's the Government's Strategy?

Intel amended its deal with the U.S. Department of Commerce "to remove earlier project milestones," reports Reuters, "and received about $5.7 billion in cash sooner than planned." "The move will give Intel more flexibility over the funds." The amended agreement, which revises a November 2024 funding deal, retains some guardrails that prevent the chipmaker from using the funds for dividends and buybacks, doing certain control-changing deals and from expanding in certain countries. The move makes the Wall Street Journal wonder what, beyond equity, the U.S. now gets in return, calling government's position "a stake without a strategy." The U.S. has historically shied away from putting money into private business. It can't really outguess the market on where the most promising returns lie. Yet there are exceptions. Sometimes a company or industry risks failing without public support, and that failure would hurt the whole country, not just its shareholders and employees. Intel meets both conditions. It isn't failing, but it is losing money, its core business is in decline, and it lacks the capital and customers needed to make the most advanced semiconductors. If Intel were to fail, it would take a sizable chunk of the semiconductor industrial base with it. At a time of existential competition with China, that is a national emergency... [U.S. Commerce Secretary Howard Lutnick] said as a shareholder, the U.S. would help Intel "to create the most advanced chips in the world." And yet the deal doesn't provide Intel with new resources to accomplish that. Rather, to get the remaining $9 billion, Intel had to give the U.S. equity. This is more like a tax than an investment: Shareholders gave up a 10th of their ownership in return for money the company was supposed to get anyway... Some of the administration's forays into private business do reflect strategic thinking, such as the Pentagon's 15% stake in MP Materials in exchange for investment and contracts that help make the company a viable alternative to China as a supplier of rare-earth magnets for products such as automobiles, wind turbines, jet fighters and missile systems. But more often, companies recoil from government ownership... Though the U.S. stake dilutes Intel's existing shareholders, its stock has held up. There could be several reasons. It eliminates uncertainty over whether the remaining $9 billion in federal funds will be forthcoming... [B]ecause Washington has a vested interest in Intel's share price, investors believe it may prod companies such as Nvidia and Apple to buy more of its chips. But that only goes so far, the article seems to conclude, offering this quote from an analyst Bernstein investment research. "If Intel can prove they can make these leading-edge products in high volume that meets specifications at a good cost structure, they'll have customers lined up around the block. If they can't prove they can do it, what customer will put meaningful volume to them regardless of what pressure the U.S. government brings to bear?" CBS News also notes the U.S. government stake "is being criticized by conservatives and some economic policy experts alike, who worry such extensive government intervention undermines free enterprise." Thanks to Slashdot reader joshuark for sharing the news.

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Intel Warns US Equity Stake Could Trigger 'Adverse Reactions'

Intel said Monday that converting $8.87 billion in federal chip subsidies into a 10% equity stake creates unprecedented complications and potential "adverse reactions" for a company deriving 76% of revenue internationally. The arrangement transforms Biden-era CHIPS Act grants into share purchases at $20.74 -- a discount to Friday's $24.80 close -- with the Department of Commerce receiving up to 433 million shares by Tuesday's expected closing. Foreign governments may impose additional regulations on Intel due to US government ownership, the company warned in securities filings, while the precedent could discourage other nations from offering grants if they expect similar equity conversions. China alone represents 29% of Intel's revenue. The deal also restricts Intel's strategic flexibility, requiring government votes align with board recommendations except on matters affecting federal interests.

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Intel's New Funding Came From Already-Awarded Grants. So What Happens Next?

The U.S. government's 10% stake in Intel "is a mistake," writes the Washington Post's editorial board, calling Intel "an aging also-ran in critical markets" that "has spent recent years stumbling on execution and missing one strategic opportunity after another." But TechCrunch points out that the U.S. government "does not appear to be committing new funds. Instead, it's simply making good on what Intel described as 'grants previously awarded, but not yet paid, to Intel.'" Specifically, the $8.9 billion is supposed to come from $5.7 billion awarded-but-not-paid to Intel under the Biden administration's CHIPS Act, as well as $3.2 billion also awarded by the Biden administration through the Secure Enclave program. In a post on his social network Truth Social, Trump wrote, "The United States paid nothing for these shares..." Trump has been critical of the CHIPS Act, calling it a "horrible, horrible thing" and calling on House Speaker Mike Johnson to "get rid" of it... According to The New York Times, some bankers and lawyers believe the CHIPS Act may not allow the government to convert its grants to equity, opening this deal to potential legal challenges. Reuters writes that the money "will not be enough for its contract-chipmaking business to flourish, analysts said. Intel still needs external customers for its cutting-edge 14A manufacturing process to go to production, says Summit Insights analyst Kinngai Chan, "to make its foundry arm economically viable." "We don't think any government investment will change the fate of its foundry arm if they cannot secure enough customers..." Reuters has reported that Intel's current 18A process — less advanced than 14A — is facing problems with yield, the measure of how many chips printed are good enough to make available to customers. Large chip factories including TSMC swallow the cost of poor yields during the first iterations of the process when working with customers like Apple. For Intel, which reported net losses for six straight quarters, that's hard to do and still turn a profit. "If the yield is bad then new customers won't use Intel Foundry, so it really won't fix the technical aspect of the company," said Ryuta Makino, analyst at Gabelli Funds, which holds Intel stock. Makino, who believes that Intel can ultimately produce chips at optimal yields, views the deal as a net negative for Intel compared with just receiving the funding under the CHIPS Act as originally promised under the Biden Administration. "This isn't free money," he said. The federal government will not take a seat on Intel's board and has agreed to vote with the company's board on matters that need shareholder approval, Intel said. But this voting agreement comes with "limited exceptions" and the government is getting Intel's shares at a 17.5% discount to their closing price on Friday. The stake will make the U.S. government Intel's biggest shareholder, though neither Trump nor Intel disclosed when the transaction would happen... Some analysts say Intel could benefit from the government's support, including in building out factories. Intel has said it is investing more than $100 billion to expand its U.S. factories and expects to begin high-volume chip production later this year at its Arizona plant. "To have access to capital and a new partial owner that wants to see you succeed are both important," said Peter Tuz, president of Chase Investment Counsel.

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Intel Has Agreed To a Deal For US To Take 10% Equity Stake, Trump Says

President Donald Trump said on Friday the U.S. would take a 10% stake in Intel under a deal with the struggling chipmaker and is planning more such moves, the latest extraordinary intervention by the White House in corporate America. Reuters: The development follows a meeting between CEO Lip-Bu Tan and Trump earlier this month that was sparked by Trump's demand for the Intel chief's resignation over his ties to Chinese firms.

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Trump Confirms US Is Seeking 10% Stake In Intel

An anonymous reader quotes a report from Ars Technica: After the Trump administration confirmed a rumor that the US is planning to buy a 10 percent stake in Intel, US Senator Bernie Sanders (I-Vt.) came forward Wednesday to voice support for the highly unusual plan, finding rare common ground with Donald Trump. According to Commerce Secretary Howard Lutnick, the plan would see the US disbursing approved CHIPS Act grants only after acquiring non-voting shares of Intel and likely other chipmakers. That would allow the US to profit off its investment in chipmakers, Lutnick suggested, and Sanders told Reuters that he agreed American taxpayers could benefit from the potential deals. "If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment," Sanders said. While Lutnick gave Trump credit for coming up with what White House Press Secretary Karoline Leavitt described as a "creative idea that has never been done before" to protect US national and economic security, it appears that Lutnick is driving the initiative. "Lutnick has been pushing the equity idea," insiders granted anonymity previously told Reuters, "adding that Trump likes the idea." So far, Intel has engaged in talks, while the Taiwan Semiconductor Manufacturing Company (TSMC) and other major CHIPS grant recipients like Samsung and Micron have yet to comment on the potential arrangement the Trump administration seems likely to pursue. They may possibly risk clawbacks of grants if such deals aren't made. On Wednesday, Taiwan Economy Minister Kuo Jyh-huei said his ministry would be consulting with TSMC soon, while noting that as yet, it's hard to "thoroughly understand the underlying meaning" of Lutnick's public comments. So far, Lutnick has only specified that "any potential arrangement wouldn't provide the government with voting or governance rights in Intel," dispelling fears that the US would use its ownership stake to try to control the world's most important chipmakers. Further reading: Intel is Getting a $2 Billion Investment From SoftBank

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Intel is Getting a $2 Billion Investment From SoftBank

Intel and SoftBank announced on Monday that the Japanese conglomerate will make a $2 billion investment the embattled chipmaker. SoftBank will pay $23 per share for Intel's common stock. The investment is a vote of confidence in Intel, which has not been able to take advantage of the AI boom in advanced semiconductors and has spent heavily to stand up a manufacturing business that has yet to secure a significant customer. "Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment," Intel CEO Lip-Bu Tan said in a statement. Intel shares lost 60% of their value last year, their worst performance in the company's more than half-century on the public market.

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