Intel Receives Up to $8.5 Billion in CHIPS Act Grants, Plus Billions in Available Loans

Intel has received funding of up to $8.5 billion from the CHIPS Act as part of the Biden administration’s push to strengthen semiconductor production in the United States. The funding supplements an $11 billion loan from the CHIPS and Science Act, which was approved in 2022. President Joe Biden announced these grants in Arizona, emphasizing that this financial support will help uphold America’s position as a leader in innovation in cutting-edge semiconductor technologies.

In contrast to companies like Nvidia, AMD, and Qualcomm, which pose competition in the U.S. semiconductor sector, Intel stands out for its ownership and operation of chip factories, known as fabs, and chip design. This sets it apart from AMD and Nvidia, which rely on outsourcing manufacturing to Taiwan’s TSMC.

Given TSMC’s stronghold on semiconductor manufacturing, there is anticipation that Intel will greatly benefit from the CHIPS Act. The objective of this legislation is to promote chip technology advancement with an emphasis on averting supply disruptions stemming from geopolitical tensions like potential conflicts related to Taiwan.

Intel intends to utilize the funds from the CHIPS Act to set up manufacturing facilities and research centers across states in the United States, such as Arizona, Ohio, New Mexico, and Oregon. These initiatives are projected to generate job opportunities and enhance Intel’s manufacturing capabilities, especially in AI chips. For instance, Intel’s fab in Ohio is expected to commence operations around 2027 or 2028. It could potentially emerge as a key location for AI chip production in the country.

Apart from its investments, Intel is also receiving backing form the CHIPS Act to expand chip production capacity and enhance capabilities within the U.S. This involes working on five semicondcutor process nodes within a span of four years and advancing its Intel 18A node. A technology that Microsoft plans to leverage for chip manufacturing. 

In general, Intel’s investments are anticipated to result in job creation on a scale and for the semiconductor supply chain in the U.S. by prioritizing workforce development through collaborations with local communications with local communities and educational institutions. Intel underscores its enduring commitment to achieving sustainable growth within the semiconductor sector. 

Intel logo. Image source: Intel

Learn more at CNBC and Manufacturing Dive.


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