Commerce Announces Chips Act Funding for Intel
The Commerce Department this week announced plans to provide about $20 billion in funding and loans to Intel under the Chips Act, which it said will “strengthen” the U.S. semiconductor supply chain by ensuring more leading-edge logic chips are made in America. Commerce said Intel expects to invest more than $100 billion over the next five years to set up new chip fabs and other facilities in Arizona, New Mexico, Ohio and Oregon, and coupled with Chips Act funding, that “would mark one of the largest investments ever announced in U.S. semiconductor manufacturing.”
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The agency said it will grant Intel up to $8.5 billion in direct funding and make $11 billion in loans “available” to the company as part of a “non-binding preliminary memorandum of terms” between the two. Intel “has indicated that it is planning to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures,” Commerce said.
Semiconductor Industry Association CEO John Neuffer applauded Commerce “for working diligently to advance the CHIPS Act’s manufacturing incentives and [research and development] investments.” The association “looks forward to continuing to work with leaders in Washington to ensure this historic initiative is implemented successfully and expeditiously, which will help strengthen U.S. chip production, innovation, and supply chain resilience well into the future.”