November 27, 2024 12:13 Memo
It turns out that Intel received $7.865 billion (about 1.2 trillion yen) from the US Department of Commerce to upgrade semiconductor production infrastructure in the US. This funding will be provided under the CHIPS and Science Act, which strengthens domestic semiconductor production capacity.
Biden-Harris Administration Announces CHIPS Incentives Award with Intel to Advance U.S. Leading-Edge Chip Capacity and Create Tens of Thousands of Jobs | U.S. Department of Commerce
Intel secures up to $7.86B in CHIPS Act funding for fab projects – SiliconANGLE
The initial terms of Intel’s funding agreement were determined in a preliminary memorandum of understanding signed in early 2024. Initially, Intel plans to receive a loan of $8.5 billion (approximately 1.3 trillion yen) and up to an additional $11 billion (approximately 1.68 trillion yen) based on CHIPS and the Science Act, and will expand manufacturing operations in four states including Arizona. We had planned to invest $100 billion (approximately 15.3 trillion yen) in the base over five years.
US government announces approximately 3 trillion yen in funding for Intel – GIGAZINE
The Commerce Department said the amount was reduced to $7.86 billion at the request of Congress related to another semiconductor aid program, Secure Enclave. Secure Enclave is a program in which Intel manufactures processors for the US government, and Intel has secured $3 billion (about 460 billion yen) from the government to carry out this program. It has also been decided that eligible chip manufacturing investments will receive a 25% tax credit.
Intel is following through on its original plan to spend $100 billion to strengthen its manufacturing footprint, with the latest project announced in March 2024 featuring ASML’s tools specialized in high-performance semiconductor manufacturing.High-NA EUVThe company is on track to upgrade its Oregon location, where it was the first company to deploy the system.
Ohio is building a huge facility called a “megasite” that could eventually include more factories and support facilities.
Intel to build world’s largest semiconductor manufacturing factory in Ohio for over 2 trillion yen – GIGAZINE
Intel has expanded its capabilities not only in processors but also in chip packaging.FoverosA portion of the funds will be earmarked for a manufacturing facility in New Mexico that will develop packaging technology. The New Mexico base was built at a cost of $3.5 billion (about 530 billion yen) and just opened in January 2024.
“CHIPS and the Science Act will accelerate American technology and innovation and make America a safer nation,” said Secretary of Commerce Gina Raimondo. “Intel is expected to play a key role in revitalizing the semiconductor industry. ”
Semiconductor production capacity enhancement in the United States is being carried out widely, and it has been revealed that TSMC, the industry’s No. 1 semiconductor manufacturer, and GlobalFoundries, the industry’s No. 3, will receive support in November 2024.
Semiconductor manufacturers TSMC and GlobalFoundries reach agreement with the Department of Commerce regarding subsidies based on the CHIPS Act – GIGAZINE
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* **To Mr. Chen:** How might the increased US investment in chip manufacturing impact the global supply chain for semiconductors, particularly in terms of pricing and lead times? Could this potentially lead to a reduction in reliance on Asian manufacturers?
## World-Today-News Exclusive Interview:
**Deciphering the Chips Act and its Implications for Intel and the US Semiconductor Industry**
**Article:** Intel secures up to $7.86B in CHIPS Act funding for fab projects – https://world-today-news.com/intel-gets-7-8b-in-chips-funding-from-us/
**Guests:**
* **Dr. Emily Carter:** Economist specializing in technology and industrial policy, Professor at MIT.
* **David Chen:** Semiconductor industry analyst at [Insert Reputable Firm], Former Intel engineer.
**Introduction:**
Welcome to World-Today-News. Today, we delve into the significant news of Intel receiving $7.86 billion in funding under the CHIPS and Science Act. We are joined by two experts, Dr. Emily Carter and David Chen, to unpack the implications of this development for Intel, the US semiconductor industry, and the global landscape.
**Section 1: The CHIPS Act: A National Strategy**
* **Question for Dr. Carter:** The CHIPS Act is a landmark piece of legislation. Could you elaborate on the broader strategic goals the US government seeks to achieve through initiatives like this? Is this primarily an economic move, a national security initiative, or both?
* **Question for Mr. Chen:** From your perspective within the industry, how crucial is government intervention like the CHIPS Act for leveling the playing field in the highly competitive global semiconductor market? Does it risk creating an unfair advantage for US companies?
**Section 2: Intel’s Plans and Investments**
* **Question for Mr. Chen:** Intel has outlined ambitious plans for its investment, including new fabrication facilities (“fabs”) in various states. Can you shed light on the technological significance of these fabs, particularly in relation to Intel’s adoption of cutting-edge technologies like High-NA EUV?
* **Question for Dr. Carter:** Intel’s manufacturing expansion goes beyond just chips.
They are investing in packaging facilities, a less publicized but vital part of the semiconductor ecosystem. What economic and strategic rationale underpins this : approach?
**Section 3: The Global Semiconductor Landscape**
* **Question for Mr. Chen:** TSMC and GlobalFoundries have also received substantial funding through the CHIPS Act. How do you perceive this multi-company approach to bolstering US semiconductor production?
Does it foster healthy competition or create undue complexity?
* **Question for Dr. Carter:** Looking at the bigger picture, how might the influx of government funding into US semiconductor manufacturing reshape the global semiconductor landscape? Could this lead to a more balanced distribution of chip production or exacerbate geopolitical tensions?
**Section 4: The Future Outlook**
* **Question for both guests:** What are your predictions for the long-term impact of the CHIPS Act on Intel, the US economy, and the global semiconductor industry? Are there potential risks or unintended consequences that we should be aware of?
**Closing:**
We thank Dr. Carter and Mr. Chen for sharing their expertise. This landmark funding for Intel represents a pivotal moment in the US semiconductor industry’s resurgence. As this story unfolds, World-Today-News will continue to provide comprehensive coverage and analysis.
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