oday, the U.S. Department of Commerce revealed that they gave a grant of $7.86 billion to the chip manufacturer Intel under the U.S. CHIPS and Science Act.
This Act represents a federal statute which is signed under the law of former President Joe Biden in 2022 in order to increase domestic semiconductor manufacturing.
This award is planned to support almost $90 billion in manufacturing and packaging techniques that are based on Intel facilities from Arizona, Ohio, Oregon, and New Mexico.
"That means American-designed chips being manufactured and packaged by American workers in the United States by an American company for the first time in a very long time,", Gina Raimondo, the Commerce Secretary stated.
According to a US government official, the Intel Chip manufacturer has already achieved the initial project goals and is set to receive a $1 billion award by the end of the year. Also, the US government official states that the recent Intel grant reduction is not related to all the Intel challenges that the company faced during this year.
It’s important to mention that this grant of just under $8 billion, represents the largest award made under a 2022 law which is focused on increasing domestic semiconductor production with about $52.7 billion in funding which includes also a $39 billion for the semiconductor production and $11 billion for the research itself.
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“Today’s award marks another key step in implementing President Biden’s CHIPS and Science Act and the Investing in America agenda to reshore manufacturing, create thousands of good-paying jobs, and strengthen our economy. Intel’s investments across the country demonstrate once again how President Biden’s Investing in America agenda is delivering for the American people.”, Natalie Quillian, the White House deputy chief of staff stated.
Besides this $7.86 billion in funding, the Intel AI chip manufacturer will profit from a 25% investment tax credit that comes from the U.S. Treasury Department. But it should be mentioned that the AI chips manufacturer has also recently won a contract worth $3 billion in order to produce the “leading edge” of semiconductors under a national security program for the U.S. government.
Stay tuned for more updates on Intel!
By
Raluca Matei
•
November 26, 2024 8:05 PM
