US government weighs options should Intel fail

US officials have started exploring scenarios on how to help Intel should the chipmaker’s financial situation continue to deteriorate, according to a Semafor report. Apparently, there’s little appetite for a bail-out, but there are other ways the government could encourage a solution led by the private sector. The “precautionary talks” are being conducted by officials from the Commerce Department and members of Congress.

Intel’s ability to continue competing at the leading edge has been in question for a few years now. The comeback staged by CEO Pat Gelsinger hinges on the success of the upcoming 18A node, which is slated to enter production in 2025. Meanwhile, rumors have popped up about a take-over by Qualcomm and an alliance with Samsung.

Intel is set to be the biggest recipient of government funding under the US Chips Act. The company is yet to receive 8.5 billion dollars in grants and 11 billion dollars in loans, however, reportedly because it’s been reluctant to share certain information sought by US officials tasked with ensuring that there’s a viable turnaround plan.