US government to award Intel $8.5 billion in direct funding under CHIPS Act

The US government is set to award Intel $8.5 billion in direct funding under the CHIPS and Science Act as confirmed by the Department of Commerce on Tuesday. Intel is also to get an additional $11bn in low-interest rate loans and a 25 percent investment tax credit on up to $100 billion of Intel’s capital investments.

“Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor manufacturing innovation,” said Intel CEO Pat Gelsinger. “AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help to ensure that Intel and the US stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”

The funding will be used to support Intel’s investments in Arizona, New Mexico, Ohio, and Oregon where the company is expanding its chipmaking facilities. President Joe Biden will visit Intel’s Ocotillo campus in Chandler, Arizona, today to announce the funding package.