Latest news with #ChipsandScienceAct
Straits Times
5 days ago
- Business
- Straits Times
Trump renegotiating Biden-era Chips Act grants, Lutnick says
The Trump administration is renegotiating some of former President Joe Biden's grants to semiconductor firms, with an official suggesting some awards may be axed. PHOTO: REUTERS WASHINGTON - US President Donald Trump's administration is renegotiating some of former President Joe Biden's grants to semiconductor firms, US Commerce Secretary Howard Lutnick said at a hearing on June 4, suggesting some awards may be axed. Some of the Biden-era grants 'just seemed overly generous, and we've been able to renegotiate them,' Mr Lutnick told lawmakers on the Senate Appropriations Committee, adding the goal was to benefit American taxpayers. 'All the deals are getting better, and the only deals that are not getting done are deals that should have never been done in the first place,' Mr Lutnick said, appearing to signal that not all the awards would survive renegotiation. Mr Biden in 2022 signed the Chips and Science Act to plow US$52.7 billion (S$67.81 billion) into boosting semiconductor chips manufacturing and research in the US and luring chipmakers away from Asia. The programme rolled out billions in grants for semiconductor heavyweights including Taiwan's TSMC, South Korea's Samsung and SK Hynix, as well as US-based Intel and Micron. The grants, while signed, had only just begun to be disbursed by the time Mr Biden left office. The details of those plans are not public, but the money is meant to be disbursed as companies make progress toward their pledged plant expansions. More bang for the buck Mr Lutnick pointed to TSMC as an example of successful renegotiation. He said the chipmaker – which won a US$6 billion Chips Act award – had increased by US$100 billion its initial pledge to invest US$65 billion in US manufacturing. 'We were able to modify the award for the same US$6 billion of (government) funding,' he said. TSMC announced the US$100 billion in added investment in March, but it was not immediately clear whether that was part of a renegotiation of its Chips Act award. TSMC declined to comment. Reuters reported in February that the White House was seeking to renegotiate the awards and had signalled delays to some upcoming semiconductor disbursements. Mr Lutnick also said the administration agrees with the goal of having more than 50 per cent of global AI computing capacity in America, responding to concerns that deals like the one announced by Mr Trump in May to allow the United Arab Emirates to buy advanced American artificial intelligence chips could deprive the United States of key AI computing power. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Time of India
10-05-2025
- Automotive
- Time of India
Chipmaker Wolfspeed shares fall 23% as slowing EV sales hit annual revenue forecast
Chipmaker Wolfspeed 's shares fell 23% on Friday after it raised going-concern doubts and forecast weaker-than-expected annual revenue as it grapples with slowing electric-vehicle demand amid economic uncertainty. The company is squeezed between sluggish demand in the industrial and automotive markets, while rival Chinese manufacturers such as Sicc Co and EpiWorld International are gaining ground with inexpensive wafers, which are thin slices of semiconductor material used to make chips. Wolfspeed's customers are also grappling with tariff-induced uncertainty, with General Motors trimming its 2025 profit forecast, while Mercedes-Benz had pulled its earnings outlook for 2025. Its departing CFO Neill Reynolds said in a post-earnings call that the company may need to pursue in-court options to renegotiate its debt and that "going concern" language could be added to the quarterly filing. Wolfspeed included the risk of "substantial doubt about the company's ability to continue as a going concern" in another regulatory filing on Thursday. The company will cut its senior leadership team by 30%, its executive chairman Thomas Werner said. It forecast 2026 revenue below market estimates. Wolfspeed's shares have fallen about 33% so far this year, after losing about 85% of their value in 2024. "Difficulties refinancing the debt, continued cash burn and slowing demand in materials increased the specter of bankruptcy and will depress the stock for the foreseeable future," Charter Equity Research said. Wolfspeed was set to lose more than $150 million from its market value of $689.2 million, if losses hold. It said it expects to receive $600 million of cash tax refunds during fiscal 2026 under the Chips and Science Act. But the future of the Biden-era legislation that promised subsidies for domestic chip manufacturing remains uncertain after U.S. President Donald Trump's administration called on lawmakers to repeal the federal funding.
Yahoo
09-05-2025
- Automotive
- Yahoo
Wolfspeed shares sink on going-concern fears, slowing EV sales hit annual revenue forecast
(Reuters) -Chipmaker Wolfspeed's (WOLF) shares fell 23% on Friday after it raised going-concern doubts and forecast weaker-than-expected annual revenue as it grapples with slowing electric-vehicle demand amid economic uncertainty. The company is squeezed between sluggish demand in the industrial and automotive markets, while rival Chinese manufacturers such as Sicc Co and EpiWorld International are gaining ground with inexpensive wafers, which are thin slices of semiconductor material used to make chips. Wolfspeed's customers are also grappling with tariff-induced uncertainty, with General Motors trimming its 2025 profit forecast, while Mercedes-Benz had pulled its earnings outlook for 2025. Its departing CFO Neill Reynolds said in a post-earnings call that the company may need to pursue in-court options to renegotiate its debt and that "going concern" language could be added to the quarterly filing. Wolfspeed included the risk of "substantial doubt about the company's ability to continue as a going concern" in another regulatory filing on Thursday. The company will cut its senior leadership team by 30%, its executive chairman Thomas Werner said. It forecast 2026 revenue below market estimates. Wolfspeed's shares have fallen about 33% so far this year, after losing about 85% of their value in 2024. "Difficulties refinancing the debt, continued cash burn and slowing demand in materials increased the specter of bankruptcy and will depress the stock for the foreseeable future," Charter Equity Research said. Wolfspeed was set to lose more than $150 million from its market value of $689.2 million, if losses hold. It said it expects to receive $600 million of cash tax refunds during fiscal 2026 under the Chips and Science Act. But the future of the Biden-era legislation that promised subsidies for domestic chip manufacturing remains uncertain after U.S. President Donald Trump's administration called on lawmakers to repeal the federal funding. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Automotive
- Yahoo
Wolfspeed shares sink on going-concern fears, slowing EV sales hit annual revenue forecast
(Reuters) -Chipmaker Wolfspeed's shares fell 23% on Friday after it raised going-concern doubts and forecast weaker-than-expected annual revenue as it grapples with slowing electric-vehicle demand amid economic uncertainty. The company is squeezed between sluggish demand in the industrial and automotive markets, while rival Chinese manufacturers such as Sicc Co and EpiWorld International are gaining ground with inexpensive wafers, which are thin slices of semiconductor material used to make chips. Wolfspeed's customers are also grappling with tariff-induced uncertainty, with General Motors trimming its 2025 profit forecast, while Mercedes-Benz had pulled its earnings outlook for 2025. Its departing CFO Neill Reynolds said in a post-earnings call that the company may need to pursue in-court options to renegotiate its debt and that "going concern" language could be added to the quarterly filing. Wolfspeed included the risk of "substantial doubt about the company's ability to continue as a going concern" in another regulatory filing on Thursday. The company will cut its senior leadership team by 30%, its executive chairman Thomas Werner said. It forecast 2026 revenue below market estimates. Wolfspeed's shares have fallen about 33% so far this year, after losing about 85% of their value in 2024. "Difficulties refinancing the debt, continued cash burn and slowing demand in materials increased the specter of bankruptcy and will depress the stock for the foreseeable future," Charter Equity Research said. Wolfspeed was set to lose more than $150 million from its market value of $689.2 million, if losses hold. It said it expects to receive $600 million of cash tax refunds during fiscal 2026 under the Chips and Science Act. But the future of the Biden-era legislation that promised subsidies for domestic chip manufacturing remains uncertain after U.S. President Donald Trump's administration called on lawmakers to repeal the federal funding. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hindustan Times
23-04-2025
- Business
- Hindustan Times
Intel to announce plans this week to cut over 20% of staff
Intel Corp. is poised to announce plans this week to cut more than 20% of its staff, aiming to eliminate bureaucracy at the struggling chipmaker, according to a person with knowledge of the matter. The move is part of a bid to streamline management and rebuild an engineering-driven culture, according to the person, who asked not to be identified because the plans are private. It would be the first major restructuring under new Chief Executive Officer Lip-Bu Tan, who took the helm last month. The cutbacks follow an effort last year to slash about 15,000 jobs — a round of layoffs announced in August. Intel had 108,900 employees at the end of 2024, down from 124,800 the previous year. A representative for Intel declined to comment. Follow the The Big Take daily podcast on Apple, Spotify or anywhere you listen. Intel shares rose as much as 3.5% in premarket trading before New York exchanges opened on Wednesday. The stock has declined about 43% in the past 12 months and closed at $19.51 on Tuesday. Tan is aiming to turn around the iconic chipmaker after years of Intel ceding ground to rivals. The Santa Clara, California-based company lost its technological edge and has struggled to catch up with Nvidia Corp. in artificial intelligence computing. That contributed to three straight years of sales declines and mounting red ink. Tan, a veteran of Cadence Design Systems Inc., has vowed to spin off Intel assets that aren't central to its mission and create more compelling products. Last week, the company agreed to sell a 51% stake in its programmable chips unit Altera to Silver Lake Management, a step toward that goal. Intel needs to replace the engineering talent it has lost, improve its balance sheet and better attune manufacturing processes to the needs of potential customers, Tan said last month at the Intel Vision conference. The company is scheduled to report first-quarter results on Thursday, giving Tan an opportunity to lay out more of his strategy. Though the worst of Intel's revenue declines are now behind it, according to Wall Street estimates, analysts aren't projecting a return to its previous sales levels for years, if ever. The 65-year-old executive was hired after last year's ouster of CEO Pat Gelsinger, who struggled to execute his own turnaround bid for Intel. He had embarked on a costly effort to expand the company's factory network — and sought to turn Intel into a made-to-order chip manufacturer. But Intel has now delayed much of its expansion effort, including plans for an Ohio facility that was once expected to become the world's largest chip production hub. Intel also had been poised to be the biggest beneficiary of money from the 2022 Chips and Science Act, but that program is now in flux under President Donald Trump. A manufacturing partnership with Taiwan Semiconductor Manufacturing Co. — the source of investor speculation in recent months — also seems less likely to happen. TSMC CEO C. C. Wei said last week that the company would remain focused on its own business. Along the way, Intel missed out on the most lucrative new field for the chip industry in decades. The company, which long dominated the market for personal computer and data center processors, was slow to respond to the shift to AI. That upheaval allowed Nvidia to grow from a niche player into the world's most valuable semiconductor company — with revenue that now eclipses Intel's sales. Gelsinger himself admitted that the company had lost its competitive spirit and expressed frustration with the speed at which it reacted to a changing market. He wasn't given the time he'd said he would need to do something about that. Tan, in his first public appearance as CEO last month, said the turnaround would take time and wouldn't be easy. 'It won't happen overnight,' he said. 'But I know we can get there.' (Updates with premarket share reaction in fifth paragraph.)
