Under the final agreement with the Biden administration, Intel will receive approximately $7.86 billion in CHIPS and Science Act funding to build new semiconductor manufacturing facilities in four states.
The final award is more than $600 million less than the $8.5 billion originally announced in March, after the chipmaker signed a separate $3 billion contract with the government in September.
“The CHIPS for America program will strengthen American innovation and technology and make our country more secure. Commerce Secretary Gina Raimondo said in a statement.
The funding is intended to support the construction of four new manufacturing facilities in Arizona and Ohio. It will also be used to modernize existing facilities in Arizona, New Mexico and Oregon.
Intel is reportedly set to receive at least $1 billion in funding later this year. wall street journal.
The White House is calling for the remaining funds from the $52 billion semiconductor stimulus package to be allocated with less than two months until President-elect Donald Trump takes office.
President Trump has previously taken aim at CHIPS funding, arguing that his administration should have imposed tariffs on chips instead to encourage semiconductor manufacturing in the United States.
“That tipping deal is so bad,” the president-elect said on “The Joe Rogan Experience” last month. “We invested billions of dollars so that wealthy companies could come in and borrow money and build chip companies here.”
“All you had to do was charge them the tariff,” he said at the time. “When you see us paying people a lot of money to make tips, that's not the way to do it. You shouldn't have had to shell out a dime.”
