According to a Bloomberg report that cites people familiar with the matter, ' the U.S. government is in discussions to provide Intel with over $10 billion in subsidies under the CHIPS and Science Act.' If the information is accurate, this will be the most significant award package announced under the act designed to revitalize domestic semiconductor production.
Intel's potential financial package is expected to consist of loans and direct grants, although the exact distribution between these is still under negotiation. The funding is a segment of the larger $39 billion in direct grants and $75 billion in loans and guarantees allocated by the CHIPS Act to entice top semiconductor firms to establish manufacturing bases in the U.S. Neither Intel nor the U.S. Commerce Department has formally confirmed the $10 billion package. Meanwhile, Intel has been a candidate to receive billions in subsidies from the U.S. government for a while.
The Bloomberg report states that since President Joe Biden's tenure began, chip companies have poured over $230 billion into U.S. investments. The administration aims to create at least two advanced manufacturing clusters on American soil by the decade's end. So far, the plan has been a success.
Intel is building up its first brand-new site in decades in Ohio, which is expected to require investments of over $100 billion to be fully built. The project requires about $20 billion in initial investments in the first two fabs. While the project might be delayed by a year or two, it will still become operational this decade. In addition, Intel is investing $20 billion in Arizona expansion and $3.5 billion in its New Mexico site. Meanwhile, the company's expansion plans hinge on the anticipated government funding.
In addition to Intel, TSMC has established its first campus in Arizona to produce chips on some of its most advanced manufacturing nodes. The company will start with 4nm and 5nm-class process technologies and then expand the campus to make 3nm-class chips. Yet again, the project entirely depends on government funding.
GlobalFoundries, Micron, Samsung, Texas Instruments, and several other chipmakers are also expanding their presence in the U.S. due to anticipated support from the government.
The U.S. Commerce Department has already distributed smaller CHIPS Act grants to other companies and anticipates more substantial announcements in the upcoming months.
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February 17, 2024 at 09:22PM
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Intel's CHIPS Act award package exceeds $10 billion, payout expected within two weeks: Report - Tom's Hardware
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