US government mulling $10bn subsidy package for Intel
The Biden administration is rumoured to be in talks with Intel to award the chip firm more than $10 billion in loans and direct grants.
Online reporting by Bloomberg says The US Department of Commerce, which handles the CHIPS Act's USD 53 billion budget, is discussing the support package with Intel representatives.
The Act was introduced to boost inwards investment for US chip production and onshore its supply chain. But handouts have been slow to materialise. To date, just two significant grants have been awarded. In December, the Commerce Department pledged USD 35 million to defence firm BAE Systems to boost its chip-making output for military aircraft. Shortly after it pledged USD 162 million to Microchip Technology to improve its plants in Colorado Springs, Colorado and Gresham, Oregon.
Intel is arguably the jewel in the crown for the US, with a glittering history and vast influence. The firm is currently building sites across the US – investing USD 3.5 billion in a New Mexico site, and extending facilities in Ohio and Arizona.
In its report Bloomberg speculated that the rumoured Chips Act subsidies could fund new building or merely accelerate existing projects, which are behind schedule.
