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Intel and US race to finalise $8.5bn in chips funding by year’s end

Chipmaker is seeking ways to shore up its business although potential takeover approaches could complicate talks
The US funding deal would be the largest single subsidy package awarded through the Chips and Science Act, aimed at boosting domestic chip manufacturing and reducing reliance on Asia supply chains

Intel and the US government are on track to finalise $8.5bn in direct funding for the chipmaker before the end of the year, even as the company tries to stabilise its ailing business, said people familiar with the discussions.

The two sides are racing to conclude months of complex and technical negotiations while Intel executes drastic cost-cutting measures. Its recent troubles have attracted attention: rival chip company Qualcomm has explored buying a stake in Intel, and there is the prospect that others could make an approach.

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