The CHIPS Ac was passed in 2022 and set aside $59 billion to bolster semiconductor manufacturing and research in the US
Intel is in line to receive up to $8.5 billion in grants from the U.S. federal government as part of the CHIPS Act, which was passed in 2022 and set aside $59 billion to bolster semiconductor manufacturing and research in the United States.
Intel may be also awarded up to $11 billion in loans, and will be able to claim federal tax credits that could cover as much as 25% of the expense of its U.S. expansion projects. The company expects to invest more than $100 billion in the U.S. over five years with particular expansions expected in in Arizona, New Mexico, Ohio and Oregon.
“Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor innovation,” said Intel CEO Pat Gelsinger. “AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help to ensure that Intel and the U.S. stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”
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Intel founded its dedicated chip manufacturing division Intel Foundry Services (IFS) in early 2021. In 2023, the division proved to be a bright spot, achieving 100% growth in the full year as compared to full year 2022. The company has closely tied its AI strategy to its foundry strategy, with CEO Pat Gelsinger commenting in January: “Intel continues its mission to bring AI everywhere. We see the AI workload as a key driver of the $1 trillion semiconductor TAM by 2030. And given our foundry and product offerings, we’re the only company able to participate in 100% of the TAM for AI silicon logic. We have already discussed how our 50-year heritage and high-performance computing transistors and our advanced packaging positions IFS to benefit from the accelerating move to AI.”
Other chip manufacturers being considered for CHIPS Act funding include TSMC and Samsung.