Intel Secures $7.86 Billion CHIPS Act Grant, Largest to Date but Reduced from $8.5 Billion

Nov 26, 2024, 10:05 AM

The Biden administration has finalized a deal to award Intel up to $7.86 billion in federal grants under the CHIPS and Science Act to support the construction and expansion of semiconductor manufacturing facilities in Arizona, New Mexico, Ohio, and Oregon. This represents the largest direct subsidy to date from the program aimed at revitalizing U.S. chip-making capabilities, surpassing the $6.6 billion grant awarded to TSMC. The final grant amount is slightly less than the preliminary estimate of $8.5 billion, with a $635 million reduction partly attributed to Intel securing a separate $3 billion defense contract. Intel's CEO, Pat Gelsinger, stated that the funding supports the company's $100 billion investment in domestic semiconductor production. Intel is expected to receive at least $1 billion of the subsidy before the end of the year. The funding is crucial for bolstering the nation's technological infrastructure and competitiveness.