The US government is granting Intel almost $8 billion dollars under the CHIPS Act. The Biden administration seems to be in a hurry to disburse the funds before 2024 ends.
The US government is giving Intel nearly $8 billion dollars to “boost domestic chip manufacturing”
The Biden Administration has released 7.865 billion dollars US in funding for Intel. The grant is part of the US government’s CHIPS Incentives Program.
The funding from the Creating Helpful Incentives to Produce Semiconductors Act is aimed at boosting domestic chip manufacturing in the US. President Joe Biden signed the CHIPS Act into law more than two years ago.
The American government intends to boost research and manufacturing for semiconductors across the country. Specifically, the Biden administration claimed it wanted to spur domestic manufacturing and ensure the country’s tech supremacy. What the government didn’t categorically say was that it wanted to minimize geopolitical risk to semiconductor manufacturing. Several lawmakers, however, did claim America was steadily falling behind other nations when it comes to chip manufacturing.
The U.S. Dept. of Commerce has awarded Intel $7.86B in funding under the U.S. CHIPS Act, supporting Intel’s investment plans in Arizona, New Mexico, Ohio, and Oregon to expand American semiconductor manufacturing and technology leadership.
Learn more. https://t.co/qvWfQMq9LT
— Intel News (@intelnews) November 26, 2024
Intel was to get more money but got government contracts
Intel’s New Albany semiconductor manufacturing plant will reportedly receive $1.5 billion in direct funding. According to the U.S. Department of Commerce, Intel will receive funds to set up factories in Arizona, New Mexico, Ohio, and Oregon.
According to the Wall Street Journal, Intel will receive at least $1 billion in funds later this year. Incidentally, Intel was to reportedly receive $8.5 billion. However, Intel received a separate $3 billion contract in September this year.
Besides boosting domestic chip production, Intel will use the funds to develop national security products and military applications. In addition to Intel, six companies will receive a total of $19 billion. The Biden administration has earmarked a total of $39 billion in funding under the CHIPS Act. The current US government will likely make more such announcements about disbursing the remaining funds before 2024 ends.
