Intel gets $19.5 billion in funding from CHIPS Act for US semiconductor manufacturing

The CHIPS and Science Act was signed by the Biden administration in 2022, authorizing $280 billion in new funding to see the US becoming the beacon for the best semiconductor factories and chips made on the planet.

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Today, the Biden administration unlocked $53.7 billion to unleash R&D and semiconductor manufacturing, with billions going to the likes of Intel, Samsung, and TSMC. The US Commerce Department has announced that Intel has signed a non-binding preliminary memorandum of terms for federal grants of up to $8.5 billion, while Intel can access up to $11 billion of loans from the CHIPS Act.

Intel will also claim US Treasury Department's Investment Tax Credit (ITC) of up to 25% for its planned investments of around $100 billion to establish multiple facilities and fabs in the USA. This includes a new fab in Arizona, an advanced packaging center in New Mexico, a leading-edge manufacturing site in Ohio -- which was just delayed from 2025 to 2027 or 2028 -- and a new R&D center in Oregon.

Intel CEO Pat Gelsinger said: "Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor manufacturing innovation. AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help to ensure that Intel and the U.S. stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation's future".

U.S. Secretary of Commerce Gina Raimondo said in a press release: "There is no one who cares more about revitalizing American manufacturing than President Biden, and today's announcement is a massive step towards ensuring America's leadership in manufacturing for the 21st century. With this agreement, we are helping to incentivize over $100 billion in investments from Intel - marking one of the largest investments ever in U.S. semiconductor manufacturing, which will create over 30,000 good-paying jobs and ignite the next generation of innovation. This announcement is the culmination of years of work by President Biden and bipartisan efforts in Congress to ensure that the leading-edge chips we need to secure our economic and national security are made in the U.S.".