No way to make money on your own: US to pay Intel $7.9 billion grant

The Joe Biden administration has reached an agreement with Intel to allocate a $7.9 billion grant under the CHIPS Act to build semiconductor manufacturing facilities in the United States. This is the largest grant under this program aimed at reducing the country’s dependence on foreign chip manufacturers.

By the end of 2024, Intel will receive the first tranche of at least $1 billion, which will be directed to three projects: in Arizona, Oregon and New Mexico. At the same time, the factory in Ohio, the launch of which was postponed until the end of the decade, is not yet eligible for state support, despite the $2 billion already allocated from the state.

Initially, Intel was supposed to receive $8.5 billion, but due to failure to meet certain goals and internal financial difficulties, the grant was reduced to $7.9 billion. In addition, the company will receive $3 billion for the production of chips for the defense sector.

Commerce Secretary Gina Raimondo said the investment brings U.S.-made chip manufacturing back to the U.S. for the first time in a long time. The CHIPS Act, passed in 2022, provides $39 billion in grants, $75 billion in loans and guarantees, and a 25% tax credit to stimulate the country’s semiconductor industry.