Biden Gives Intel $7.865 Billion in Support for Microprocessor Factories
Intel has received $7.865 billion in federal aid in direct funding for microprocessor manufacturing in the United States. It’s the largest grant ever given by the Biden administration using money from the so-called CHIPS Act, which aims to reduce foreign dependence on microprocessor manufacturing.
The Biden administration is trying to secure binding contracts with companies with which it has preliminary agreements so that the arrival of Donald Trump in the White House does not jeopardize aid. The Republican opposes granting subsidies and wants to make American microprocessor companies competitive by imposing strong tariffs on imports.
The award follows an initial term sheet announced on March 20, 2024. At that time, the assistance was valued at $8.5 billion, but the agreement eventually closed at a lower amount. The award will directly support Intel’s planned investment of approximately $90 billion by the end of the decade, part of the company’s $100+ billion global expansion plan. The Commerce Department will disburse the assistance based on Intel’s achievement of the project’s milestones.
Intel is the only U.S. company that designs and manufactures advanced logic chips. This funding will support Intel’s semiconductor R&D and manufacturing operations at its centers in Arizona, New Mexico, Ohio and Oregon, where the company develops and produces many of the world’s most advanced semiconductor chips and packaging technologies.
“The CHIPS program will advance American innovation and technology and make our country safer,” said Secretary of Commerce Gina A.