Intel is reportedly set to receive up to $8.5 billion in federal grants related to the CHIPS Act, and could receive up to $11 billion in additional loans. The funding will be used for manufacturing and research facilities in Arizona, New Mexico, Ohio and Oregon.
Intel is set to receive up to $8.5 billion in CHIPS Act funding, the White House said Wednesday, as the Biden administration moves forward with efforts to subsidize semiconductor manufacturing in the United States, according to reports. report By CNBC.
In addition, the company could receive an additional $11 billion in financing from the CHIPS (Creating Semiconductor Production Incentives) and Science Act passed in 2022.
U.S. Commerce Secretary Gina Raimondo told reporters that the funding will help “cutting-edge, American-made semiconductors” keep America “in the driver’s seat of innovation.”
The agreement between the White House and Intel is reportedly non-binding, preliminary and subject to change.
Intel has long been a reliable chip developer in the U.S. semiconductor industry, but its revenue has now been surpassed by AI chip leader Nvidia.
CPU rivals AMD and mobile phone chip maker Qualcomm also exceed Intel in terms of market capitalization, or the total value of all of a company’s stocks.
Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) has dominated the semiconductor manufacturing industry in recent years, which is why Intel expects it to be one of the biggest beneficiaries of the CHIPS Act, which encourages companies to set up facilities in the United States. This is the reason why. This is an effort to prevent potential supply disruptions in case China decides to invade Taiwan.
Intel announced that it will use government grants to build facilities and research centers in Arizona, New Mexico, Ohio and Oregon. The company aims to catch up with cutting-edge manufacturers by 2026.
The semiconductor manufacturing company also claims that 20,000 jobs will be created as a result of the construction of the facility, and an additional 10,000 jobs will be created in the chip manufacturing sector.
Last summer, Intel announced it would open an “innovation” factory in Shenzhen, China’s technology capital.
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