According to a new report from Semafor, the US Commerce Department is exploring multiple avenues to bail out the American company, including a forced merger with rival AMD – because things are so much better when one company rules the markets.

One option is to merge with AMD, with whom Intel recently teamed up on an x86 council to protect the architecture from the rise of ARM-based chips like Qualcomm's Snapdragon Elite. Merging with Marvell has also been suggested.

Apple and Qualcomm were not mentioned despite American companies increasingly looking to manufacture in-house, but that would probably lead to Apple fanboys dowsing themselves with petrol and setting themselves on fire outside the White House.

The US government has never forced a merger between two companies, but sources suggest it could encourage a private sector-led merger between Intel and AMD or Marvell. Neither company has indicated that it is interested in taking on Intel's portfolio and foundries.

Another potential solution involves the CHIPS Act, which aims to help American tech companies compete with China by providing cash infusions. Intel is expected to receive over $20 billion in grants and low-interest loans through the CHIPS Act. However, Intel has not yet received any of that money due to concerns from US officials that the company needs to present a "viable" turnaround plan.

Policymakers are reportedly hesitant to implement a bailout like the 2008 financial crisis, where the government took a direct stake in struggling companies. Sources indicated to Semafor that initial discussions among Congress members and Commerce Department officials are due to the strategic importance of Intel, which acts as a "counterweight to China" in the semiconductor industry.

Unlike Nvidia and Qualcomm, Intel manufactures its chips rather than outsourcing production to facilities like Korea and Taiwan.

An Intel spokesperson told Semafor, "Intel is the only American company that designs and manufactures leading-edge chips and is playing a critical role in enabling a globally competitive semiconductor ecosystem in the US."

Last week, Chipzilla reported a significant net loss, which the company attributed to writedowns and "restructuring charges." Despite this, Intel expressed optimism for the fourth quarter.

Despite the challenges, Intel's short-term future appears somewhat brighter. The company has secured a massive order from the US Department of Defence and Amazon Web Services. Intel anticipates launching its 18A chip in 2025.