Intel To Get $7.865 Bln Govt. Grant For US Semiconductor Projects

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(RTTNews) - The U.S. government has offered Intel Corp. up to $7.865 billion in direct funding for its commercial semiconductor manufacturing projects, which is expected to create thousands of jobs. The latest award, together with a 25% investment tax credit which the firm plans to claim, would support the chip maker's plans to invest more than $100 billion in the U.S.

Intel and the Biden-Harris Administration announced that the U.S. Department of Commerce has agreed on terms of the grant under the U.S. CHIPS and Science Act. The Department will disburse the funds based on Intel's completion of project milestones.

Meanwhile, the newly offered funding is lower than the originally proposed $8.5 billion funding, due to a congressional requirement to use CHIPS funding to pay for the $3 billion Secure Enclave program.

The $3 billion contract was awarded to Intel for the Secure Enclave program for expanding manufacturing of leading-edge semiconductors for the U.S. government.

With the offered funding, Intel expects to advance commercial semiconductor manufacturing and advanced packaging projects in Arizona, New Mexico, Ohio and Oregon.

According to Intel, the planned U.S. investments, including projects beyond those supported by CHIPS, would support more than 10,000 company jobs, nearly 20,000 construction jobs, and more than 50,000 indirect jobs with suppliers and supporting industries.

Intel noted that the CHIPS Act award will directly support its investments at sites where the company develops and produces many of the world's most advanced chips and semiconductor packaging technologies. These include Arizona, the Silicon Desert; New Mexico, the Silicon Mesa; Ohio, the Silicon Heartland; and Oregon, the Silicon Forest.

Since the passage of the CHIPS and Science Act more than two years ago, Intel has announced plans to invest more than $100 billion in the U.S. to expand chipmaking and advanced packaging capacity.

The Government has been offering funding to chipmakers, with a view to strengthening the resilience of the U.S. semiconductor supply chain, advancing U.S. technology leadership, and fueling U.S. global competitiveness.

So far, CHIPS for America has awarded over $19 billion of the over $36 billion in proposed incentives funding. These funding across 20 states are expected to create over 125,000 jobs.

U.S. Secretary of Commerce Gina Raimondo said, "The CHIPS for America program will supercharge American technology and innovation and make our country more secure - and Intel is expected to play an important role in the revitalization of the U.S. semiconductor industry. Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award is catalyzing Intel to make one of the largest investments in semiconductor manufacturing in U.S. history."