Tech Crunch reports that Intel has been awarded a substantial $7.865 billion grant from the U.S. Department of Commerce as part of the CHIPS and Science Act. This initiative, signed into law by President Biden in 2022, aims to revitalize domestic semiconductor manufacturing and reduce reliance on foreign chip production.
The funding will support Intel’s advanced chip manufacturing and packaging endeavors across facilities in Arizona, New Mexico, Ohio, and Oregon. Intel CEO Pat Gelsinger emphasized the importance of this investment for bolstering American technological leadership and economic growth.
This grant, while slightly less than the initially proposed $8.5 billion, represents a significant boost for Intel’s ambitious plans. The company is transitioning to a “foundry” model, producing chips designed by other companies, and has been expanding its manufacturing capacity to accommodate this shift. This includes the construction of new fabrication plants (“fabs”) in Arizona and Ohio, though some projects have faced delays due to market challenges.
Despite recent financial setbacks, including workforce reductions and losses in its foundry business, Intel remains a cornerstone of the U.S. strategy to onshore chip production. The White House views this investment as crucial for strengthening the American economy and national security.
Beyond the direct funding, Intel will also receive a 25% investment tax credit and has secured a separate $3 billion government contract for advanced semiconductor manufacturing. These combined incentives underscore the government’s commitment to revitalizing the domestic chip industry with Intel as a key partner.
