Intel in Talks for ‘More Than’ $10 Billion in Chips Act Incentives, Reports Bloomberg

The government of US President Joe Biden is considering providing Intel with a subsidy of ‘more than’ ten billion dollars, insiders report to the Bloomberg news agency. This amount is intended, among other things, to subsidize the construction of new chip factories.

The potential subsidy is provided under the U.S. Chips Act, which will provide a total of $53 billion to expand the U.S. chip sector, reports Bloomberg news agency. This also includes subsidies for new chip factories, in addition to investments in semiconductor R&D.

Sources tell Bloomberg that Intel is eligible for “more than $10 billion,” without mentioning a specific amount. This is currently being negotiated. The subsidies would consist of both loans and direct subsidies, the news agency claims. Intel and the U.S. Commerce Department, which oversees the issuance of Chips Act subsidies, declined to respond to questions from Bloomberg.

Intel is currently building several new chip factories in the United States. The company recently opened a new packaging factory in New Mexico, where individual chipdies and chiplets are packaged into a single, working chip, for example based on advanced techniques such as EMIB and Foveros. The company is also building chip manufacturing plants in Arizona. There will also be new chip production in Ohio, although according to American media the start of construction has been postponed until the end of 2026 due to disappointing demand on the chip market.

A render of Intel’s upcoming chip factory in Ohio. Source: Intel
2024-02-19 14:10:16
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