Intel getting help from Commerce Secretary Raimondo as part of effort to spur U.S. production

Intel has been badly beaten down of late, losing 60% of its value this year as it struggles to find its way in the booming artificial intelligence market while aggressively building out fabs in the U.S. The company is turning to Commerce Secretary Gina Raimondo for help.

In a recent meeting with Raimondo, Intel CEO Pat Gelsinger voiced frustration over the heavy reliance that U.S. companies have on Taiwan Semiconductor Manufacturing, the world's largest contract chipmaker.

Raimondo followed that up with meetings with a handful of public market investors to reinforce the importance of chip manufacturing in the U.S., given the growing geopolitical risk around Taiwan, according to people familiar with the matter who asked not to be named because the discussions were private. Raimondo's goal was to urge shareholders in companies like Nvidia and Apple to recognize the economic benefits of having a U.S. foundry that can produce AI chips, the people said.

Intel is currently building out plants in four U.S. states as it seeks to become more of a foundry business, manufacturing chips for other suppliers. Earlier this year, Intel was awarded up to $8.5 billion in CHIPS Act funding from the Biden administration and could receive an additional $11 billion in loans from the legislation, which was passed in 2022.

None of the funds have been distributed yet. A senior government official told CNBC disbursements are expected by the end of the year.

It's an increasingly important initiative for Intel, which is getting trounced in the market for microprocessors. In addition to losing share in its core PC and data center market to the likes of Advanced Micro Devices, Intel is hardly on the map in AI, where Nvidia is dominant.

Intel's foundry