Once the new president is elected, there could be a move to leverage the Chips Act money in a deal with multiple companies to establish a new foundry company.
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The government fund will not save Intel. It will be spent in just a quarter, used to layoff people. How will Intel survive long term?
Republicans don't have problem supporting Intel... (domestic company, national security hero). The problem they see is giving billions ($6.6B) to TSMC who is already very profitable and do not need any government help to fund expansion in the United States.
US government, regardless of who is in charge, and to be fair all US based companies like NVIDIA, AMD, AMAZON, MSFT, QCOM, etc has a vested interest in seeing Intel succeed.
Both to deter risk of too much reliance on TSMC in Taiwan ... geopolitical risk but also to have better negotiation power. If Intel foundry fails ... TSMC can basically price their wafers however they way and there is nothing the customers can do about it, TSMC will be a king maker.
There is no need to waste gov't funds (i.e. your funds as a taxpayer) when you can find plenty of stupid investors who will gamble on bad ideas.
Stay in your lane, government!
Not gonna happen. If Kamala wins they will stall but not unwindcthe current deal. Dems have too much egg on their face for supporting the grift but getting nothing but layoffs. If Trump wins Johnson said the Republicans will possibly unwind the deal.
It is not the governments job to manipulate markets. Ideas like this are a good reason why this country is nearly $36T in debt. It has never worked in the past why would it work now. The government needs to stay in their lane.