Intel claims nearly $20 billion in support to boost chip production
The US chipmaker has secured nearly USD 20 billion in grants and loans under the CHIPS Act. The funding supports Intel’s USD 100 billion to build and expand semiconductor facilities in Arizona, Ohio, New Mexico, and Oregon – creating nearly 10,000 industry jobs
U.S. Department of Commerce has proposed up to USD 8.5 billion in direct funding through the CHIPS Act to advance Intel’s semiconductor projects across the country.
As previously reported by Evertiq, the CHIPS Act funding aims to increase US semiconductor manufacturing and R&D capabilities, especially in leading-edge semiconductors. The proposed funding would help advance Intel’s expansion projects at its sites in Arizona, New Mexico, Ohio and Oregon.
“Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor innovation,” says Intel CEO Pat Gelsinger, in a press release. “AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help to ensure that Intel and the U.S. stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”
Together, the CHIPS Act proposed funding and Intel’s previously announced plans to invest more than USD 100 billion in the U.S. over five years constitute one of the largest public-private investments ever made in the US semiconductor industry. With support from the CHIPS Act funding, Intel’s planned investments are expected to create more than 10,000 new permanent jobs at the company.
Under the preliminary memorandum of terms (PMT) signed with the U.S. Department of Commerce, Intel also has the option to draw upon federal loans of up to USD 11 billion. Intel also plans to claim tax credits, which are expected to be up to 25% of qualified investments of more than USD 100 billion over five years.
