{"text":[[{"start":12.08,"text":"The US has embarked on an ambitious and expensive project: rebooting a domestic manufacturing industry for leading-edge chips. "},{"start":19.159,"text":"A downturn in demand ratchets up the pressure. "}],[{"start":22.259999999999998,"text":"Intel imagines the push will help it regain global dominance. "},{"start":25.964,"text":"It would not be the first time the hopes of the US chip giant have exceeded its prospects. "}],[{"start":31.43,"text":"The US Chips Act puts more than $52bn up for grabs via a mishmash of loans, guarantees for third parties and direct funding. "},{"start":39.597,"text":"Money will arrive in the coming months. "}],[{"start":42.72,"text":"Intel is expected to be one of the biggest beneficiaries. "},{"start":46.274,"text":"But semiconductor companies jostling for funds are aiming at a moving target. "},{"start":50.242,"text":"The US government has introduced extra conditions, including childcare provision and limiting investment in Chinese entities. "},{"start":56.634,"text":"Funds cannot be spent on buybacks and dividends. "},{"start":59.614,"text":"Some projects will need to share profits. "}],[{"start":62.959999999999994,"text":"Intel can find ways to tick those boxes. "},{"start":65.839,"text":"It helps that the US wants projects that contribute to America’s national security and reduce dependence on chips made in Taiwan. "},{"start":72.68199999999999,"text":"Unlike rival AMD, Intel designs and makes chips. "}],[{"start":77.22,"text":"Yet Intel’s stock is down 24 per cent since the Chips Act was signed into law last August. "},{"start":82.837,"text":"Falling demand for semiconductors is only one reason for this. "},{"start":86.429,"text":"The share price of rival AMD is down 15 per cent over the same period. "}],[{"start":91.72,"text":"Intel has a large, cumbersome corporate structure, reflecting its range of legacy businesses. "},{"start":97.42399999999999,"text":"It does not produce leading-edge chips. "},{"start":99.679,"text":"Last year, revenue fell by a fifth. "},{"start":102.297,"text":"It is expected to drop by the same amount this year. "},{"start":105.152,"text":"Net income margin has halved. "}],[{"start":108.02,"text":"The company is, meanwhile, increasing capital spending to pay for new factories and designs. "},{"start":113.66199999999999,"text":"The figure is expected to climb from about 20 per cent of sales five years ago to the “low 30s” this year. "},{"start":119.267,"text":"Last month, Intel cut its dividend by two-thirds. "}],[{"start":123.1,"text":"AMD’s net income margin has also fallen. "},{"start":126.292,"text":"Semiconductor demand is readjusting following high spending during the pandemic. "},{"start":130.647,"text":"But AMD has less onerous capex obligations. "},{"start":133.814,"text":"Its new Ryzen chips boast artificial intelligence capabilities. "},{"start":137.519,"text":"Margins are forecast to return to 21 per cent this year. "}],[{"start":141.97,"text":"Subsidies have a tendency to reduce competitiveness rather than increase it. "},{"start":146.149,"text":"They could simply reduce pressure on Intel to improve its performance. "},{"start":149.829,"text":"If money was essential for a turnround, it should have started 10 years ago, when Intel was sitting on more cash than its rivals. "}],[{"start":156.67,"text":""}]],"url":"https://creatives.ftacademy.cn/album/100289-1678158938.mp3"}