Intel and the Biden Administration have finalized an agreement that will see Intel receive approximately $7.86 Billion from the CHIPS and Science Act to build new semiconductor manufacturing facilities in four states.
The initial award of $8.5bn was announced in March. This award is over $600m lower. The chipmaker had previously won a contract with the government worth $3B in September.
In a statement released recently, Gina Raimondo, Secretary of Commerce, stated that the CHIPS for America Program would “supercharge American technology, innovation and security.” Intel’s unprecedented investment in Arizona, New Mexico, and Oregon has played a key role in revitalizing the U.S. Semiconductor Industry. “
Funds will be used for upgrading existing facilities and the construction of four new manufacturing facilities in Arizona, New Mexico, and Oregon.
The Wall Street Journal reported that Intel would receive funding of at minimum $1 billion in the later part of this year.
Less than two months prior to the inauguration of President-elect Trump, the White House is looking at allocating the remaining funds from the $52 Billion Semiconductor Stimulus package.
In the past, Trump has attacked CHIPS funding. He argued that the administration should have instead levied tariffs to encourage semiconductor manufacturing within the U.S.
The president-elect said on “The Joe Rogan Experience” last month that “that chip contract is so bad.” “We put billions on the table for rich companies to build chip factories in this country.
He said: “All you had to do was charge tariffs. I hate it when we spend a lot of money to pay people for making chips.”
