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Intel Receives $7.87 Billion CHIPS Act Grant, Reduced from $8.5B, for U.S. Chip Plants

Nov 26, 2024, 07:05 AM

The Biden administration has finalized a deal to award Intel up to $7.87 billion in federal grants under the CHIPS Act, marking the largest direct subsidy from the program aimed at reviving American chip manufacturing. The funding supports Intel's construction and expansion of semiconductor plants in Arizona, New Mexico, Ohio, and Oregon. The grant amount is less than the preliminary figure of $8.5 billion announced earlier in 2024, partially due to Intel receiving a separate $3 billion contract from the Department of Defense to produce chips for the military. Additionally, Intel declined an $11 billion low-cost government loan that had been offered in March. The company is expected to receive at least $1 billion of the funding before the end of the year. The CHIPS Act aims to boost domestic semiconductor manufacturing and support tens of thousands of jobs.