Intel Secures Nearly $7.9 Billion in CHIPS Act Funding to Boost U.S. Semiconductor Growth
Intel and the U.S. government have finalized a new agreement granting the chipmaker up to $7.86 billion through the CHIPS Act, aimed at expanding semiconductor manufacturing facilities across multiple states and supporting Intel’s ambitious $100 billion investment plan.
Highlights
- Intel clinches up to $7.86 billion in CHIPS Act funding from the Biden administration.
- Funds will accelerate expansion of semiconductor fabrication sites in Arizona, New Mexico, Ohio, and Oregon.
- The final funding amount is slightly less than the initial $8.5 billion due to overlapping defense-related contracts.
Intel and the U.S. government have reached a definitive agreement awarding the company up to $7.86 billion in CHIPS Act funds, supporting Intel’s strategic push to enhance domestic chip production. This funding supports Intel’s ongoing and upcoming projects across key states including Arizona, Ohio, New Mexico, and Oregon.
The investment forms part of Intel’s broader plan to inject nearly $100 billion into expanding its U.S. manufacturing footprint. Disbursement of funds will be milestone-based, ensuring progress aligns with government expectations, as confirmed by the U.S. Department of Commerce.
The finalized amount is less than the preliminary $8.5 billion announced earlier this year, due to Intel’s participation in other defense-related initiatives that also receive CHIPS funding.
CHIPS Funding Bolsters Intel’s Strategic Revival
CEO Pat Gelsinger views this funding as a vital component in revitalizing Intel after a challenging year marked by competitive setbacks and workforce reductions. Despite recent hurdles, including a significant second-quarter loss and a 15% workforce layoff, Intel is making steady progress towards regaining its industry leadership.
Intel’s stock has experienced volatility, losing about half its value since the start of the year, though it has seen occasional boosts from takeover rumors and asset sales. However, recent reports suggest Qualcomm’s interest in acquiring Intel has waned, citing financial and regulatory complexities.
Officials from the Commerce Department anticipate announcing additional CHIPS Act funding agreements soon, aiming to finalize as many deals as possible before the upcoming presidential transition in January.
Intel shares rose modestly by over 0.7% to approximately $25.05 amid these developments.
Explore useful articles in Company News as of 01-12-2024. The article titled " Intel Secures Nearly $7.9 Billion in CHIPS Act Funding to Boost U.S. Semiconductor Growth " offers in-depth analysis and practical advice in the Company News field. Each article is carefully crafted by experts to provide maximum value to readers.
The " Intel Secures Nearly $7.9 Billion in CHIPS Act Funding to Boost U.S. Semiconductor Growth " article expands your knowledge in Company News, keeps you informed about the latest developments, and helps you make well-informed decisions. Each article is based on unique content, ensuring originality and quality.