Intel has already received $2.2B in federal grants for chip production
Semiconductor Giant Intel Corporation has already received $ 2.2 billion in federal subsidies from the US Department of Commerce via the US Chips and Science Act, the company shared during Thursday’s profit call.
Dave Zinner, CEO of CEO of Intel, Executive Vice President, and CFO, said that the company based in Silicon Valley received the first $ 1.1 billion in federal subsidies at the end of 2024 and an extra $ 1.1 billion in January 2025.
These subsidies are based on achieving certain milestones, Zinter added. Another $ 5.66 billion still has to be distributed.
The company received a total of $ 7.86 billion in federal subsidies to build semiconductors in the US in November as part of the US Chips and Science Act by the US Department of Trade. Although a considerable amount, this was a total of less than the original estimate of $ 8.5 billion.
When Intel received his subsidy money in November, the company said that it was planning to set the funds for production and advanced packaging, or to techniques to assemble and integrate several semiconductor chips in one package. This will be done at Intel facilities in Arizona, New Mexico, Ohio and Oregon.
The US Chips and Science Act was signed in 2022 by former President Joe Biden in federal law in an attempt to increase the production of the domestic semiconductor. The law has reserved $ 52 billion in subsidies for domestic chip manufacturers.
Although two years old, the Chips Act is confronted with some uncertainty under the Trump government. If the federal financing of President Donald Trump, who is currently being blocked by a federal court, is in force, this would be aimed at the Chip Act, according to the commerce department, according to according to according to the Commerce department Bloomberg reporting.
Zinner, however, had a bright look. When asked by an analyst, he said that Intel has already been in communication with the Trump administration and “really feels good” about the prospects of the administration about reducing semiconductor production to the United States.
“We are looking forward to the constant involvement in the Trump administration while we promote this work and support their efforts to strengthen American technology and the production of leadership,” Zinter said earlier in the call.
