- Judith Akatugba
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Bloomberg News reported on Friday that the Biden administration is in talks to give Intel Corp. subsidies worth over $10 billion, citing people with knowledge of the situation.
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According to the article, negotiations are now in progress, and Intel’s award package is expected to comprise both loans and direct grants.
Intel and the US Department of Commerce, which is in charge of allocating CHIPS Act funding, declined to comment.
U.S. Commerce Secretary Gina Raimondo stated earlier this month that her agency intended to make multiple financing awards from the government’s $39 billion program to encourage chip manufacturing within two months. The department has already announced two smaller Chips Act projects.
The goal of the semiconductor fund is to finance the manufacturing of chips and associated supply chain expenditures; the grants will support the construction of new factories and an increase in output.
Together with a new location in Ohio that the Silicon Valley giant claims has the potential to become the largest chip plant in the world, Intel intends to invest tens of billions of dollars in chip plants at long-standing locations in Arizona and New Mexico.
However, a slump in the chip market and a delayed rollout of federal funding have caused Intel to postpone completion of the Ohio location until 2026, according to a Wall Street Journal report earlier this month.
It’s uncertain if Taiwan Semiconductor Manufacturing Co.’s plans, which have also filed for U.S. support and whose chip facility under construction in Arizona has been delayed, could pick up speed again this year with a flood of federal funds.
Additionally, Micron and Samsung Electronics have applied to the program and are building new semiconductor plants in the United States.
