AI, Hardware, Tech News
Intel has already received $2.2 billion in federal grants for chip production.
Jan
Intel Corporation
has already received $2.2 billion in federal grants from the US Department of Commerce under the CHIPS and Science Act, according to the company’s earnings call on Thursday.
Intel’s co-interim CEO, executive vice president, and CFO, Dave Zinsner, stated that the Silicon Valley-based business got the first tranche of $1.1 billion in federal subsidies at the end of 2024, followed by a further $1.1 billion in January 2025.
These grants are contingent on meeting certain milestones, Zinsner explained. Another $5.66 billion has yet to be distributed.
In November, the business received a total of $7.86 billion in federal funds to develop semiconductors. In the United States as part of the Department of Commerce’s CHIPS and Science Act. While a considerable sum, it was less than the initial $8.5 billion forecast.
When Intel was given the grant in November. The corporation stated that it intended to use the funding for manufacturing and advanced packaging. As well as approaches for assembling and integrating many semiconductor chips into a single package. This will be carried out at Intel sites in Arizona, New Mexico, Ohio, and Oregon.
Former President Joe Biden signed the U.S. CHIPS and Science Act into law in 2022 with the goal of increasing American semiconductor manufacturing. The measure allocated $52 billion in subsidies for domestic semiconductor producers.
Despite being two years old, the CHIPS Act faces considerable uncertainty under the Trump administration. If President Donald Trump’s federal budget freeze, which is now being delayed by a federal judge, goes into force, it will harm Commerce Department personnel working on the CHIPS Act, according to Bloomberg.
Zinsner had a more optimistic outlook. When queried by an analyst, he stated that Intel has already communicated with the Trump administration and “feels really good” about the government’s plans to bring chip production back to the United States.
“We look forward to continued engagement with the Trump administration as we advance this work and support their efforts to strengthen U.S. technology and manufacturing leadership,” Zinsner said before the conference call began.
