Intel to receive up to $7.865 billion in CHIPS grants

It has been revealed that Intel has received $7.865 billion (approximately 1.2 trillion yen) from the US Department of Commerce to upgrade semiconductor manufacturing infrastructure in the US. The funds will be provided under the 'CHIPS and Science Act,' which strengthens domestic semiconductor manufacturing capacity.

Biden-Harris Administration Announces CHIPS Incentives Award with Intel to Advance US Leading-Edge Chip Capacity and Create Tens of Thousands of Jobs | US Department of Commerce

Intel secures up to $7.86B in CHIPS Act funding for fab projects - SiliconANGLE

The initial terms of Intel's financing agreement were determined in a preliminary memorandum of understanding signed in early 2024. Initially, Intel was expected to receive $8.5 billion under the CHIPS and Science Act, plus up to $11 billion in additional loans, and planned to invest $100 billion over five years in manufacturing sites in four states, including Arizona.

US government announces approximately 3 trillion yen funding for Intel - GIGAZINE

The Commerce Department said the amount was reduced to $7.86 billion at the request of Congress in connection with another semiconductor grant, the Secure Enclave program. Intel has secured $3 billion in government funding to carry out the program, which sees the company manufacturing processors for the U.S. government. Intel also receives a 25% tax credit on eligible chip manufacturing investments.

Intel is moving forward with an initial plan to spend $100 billion to strengthen its manufacturing footprint, with its latest project, announced in March 2024, being to upgrade its Oregon facility, the first in-house deployment of ASML's High-NA EUV tool, which is specialized for manufacturing high-performance semiconductors.

The company is building a massive facility in Ohio called a 'megasite' that could eventually house even more factories and support facilities.

Intel to build world's largest semiconductor manufacturing plant in Ohio for over 2 trillion yen - GIGAZINE

Intel is expanding its chip packaging capabilities beyond processors, and plans to use part of the funding for a manufacturing facility in New Mexico that develops a packaging technology called ' Foveros .' The New Mexico facility was built at a cost of $3.5 billion and opened in January 2024.

'The CHIPS and Science Act will accelerate American technology and innovation and make America a safer place,' Commerce Secretary Gina Raimondo said. 'Intel will play a key role in revitalizing the semiconductor industry.'

The strengthening of semiconductor production capacity in the United States is being carried out widely, and it has been revealed that TSMC, the industry's number one semiconductor manufacturer, and GlobalFoundries, the industry's number three, will receive support in November 2024.

Semiconductor manufacturers TSMC and GlobalFoundries reach agreement with Department of Commerce on CHIPS subsidy assistance - GIGAZINE