US chip giant Intel’s week looked to be going from bad-to-worse as any potential sale to rival Qualcomm is reportedly now off the table, while the US government confirmed it had reduced the company’s chip funding.

On the Qualcomm deal, Bloomberg noted any swoop for Intel assets could have been among the industry’s biggest deals, potentially topping the list entirely.

The news agency stated the complexity of any deal proved off-putting for Qualcomm, though it noted this does not preclude any further arrangements involving individual Intel units in future.

Qualcomm was linked to a possible move on Intel in September, though Reuters reported at the time the Cristiano Amon-led business had been eyeing at least some elements of its rival for a while.

Speculation on Intel’s future is growing after some bruising earnings left it scrambling for options.

It arranged a sale of its stake in chip design business Arm in August and is working to cut its staff by 15 per cent by the year-end as part of efforts to get back on track.

CHIPS
Shortly after the Bloomberg story broke, the US government confirmed it would provide Intel with $7.9 billion in funding as part of its CHIPS and Science Act programme, a reduction from the $8.5 billion the company originally stood to receive.

A statement from the US Department of Commerce confirmed a New York Times (NYT) article released on 24 November stating the government would slash the sum Intel receives.

NYT put the decision down to several factors, including a delayed build of a new chip plant and unease about Intel’s competitiveness.