Duval Times

On August 28, 2024, Senator Rick Scott addressed a letter to Intel CEO Patrick Gelsinger, seeking clarification on the allocation of billions in U.S. taxpayer dollars to Intel under the CHIPS and Science Act. This inquiry follows Intel's announcement of a 15 percent workforce reduction.

Senator Scott has long criticized the legislation, expressing concerns that it permits companies like Intel to access substantial taxpayer funds without stringent accountability measures for domestic job creation. He also highlighted Intel's ongoing operations in China as problematic.

In his letter, Senator Scott noted that the Biden-Harris Department of Commerce had proposed up to $8.5 billion in direct funding for Intel through the CHIPS and Science Act, alongside a 25 percent tax credit on more than $100 billion in assets and potential federal loans amounting to $11 billion. Despite this financial support, Intel announced significant job cuts totaling approximately 15,000 positions.

Scott wrote: "When the Senate was considering the CHIPS and Science Act in 2022, members of the Senate warned about the bill’s flaws," emphasizing that these concerns are now materializing with companies accessing taxpayer money while continuing operations in China.

The letter includes several pointed questions for Gelsinger:

- Will any U.S. Intel employees lose their jobs due to these cuts? If so, how many?

- Where are the jobs being cut?

- Is Intel still committed to investing in American semiconductor manufacturing?

- Has this announcement affected your investment timeline?

- Would Intel agree to forfeit CHIPS Act funds if it fails to meet its investment promises?

- Is Intel still committed to investing in China?

- Will any U.S. taxpayer-provided funds be invested in China?

- What is the rationale behind these job cuts despite substantial U.S. investments?

Senator Scott concluded by expressing his desire for detailed answers on how Intel plans to manage and protect U.S. taxpayer investments.