Intel Gets $19.5 Billion in Federal Funding and Loads of Tax Credits To Bolster Its Planned $100 Billion Spending Spree in the US – Wccftech
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Ever since its passage in 2022, the CHIPS and Science Act – a signature reform of the Biden Administration that authorized $280 billion in new funding to improve the technological standing of the US, including $52.7 billion to bolster the R&D and manufacturing of semiconductors – has been largely stuck in the doldrums. However, this inertia changed dramatically today when the Biden Administration announced a literal funding flood for Intel, with awards for Samsung and TSMC expected to materialize in the coming weeks.
To wit, as per the press release of the US Commerce Department, Intel has signed a non-binding preliminary memorandum of terms for federal grants of up to $8.5 billion and loans of up to $11 billion under the auspices of the CHIPS Act.
The chipmaker also plans to claim the U.S. Treasury Department’s Investment Tax Credit (ITC) of up to 25 percent on its planned investments of around $100 billion in the US to establish:
Bear in mind that Intel’s investments in Columbus, Ohio, are aimed at establishing “the largest AI chip manufacturing site in the world” by 2027, as per the comments of the company’s CEO, Pat Gelsinger.
Of course, Intel had been demanding funds of over $10 billion from the Biden Administration. Gelsinger is on record for stating that the chipmaker deserves a larger share of the CHIPS Act pie for putting its business at risk by siding with the US in its quest to establish absolute dominion over the semiconductor sphere.
In fact, Intel had been slow-walking its planned investments in the US to nudge the Biden Administration to acquiesce to its demands. Today’s development would presumably go a long way in satisfying the company’s core stipulations, paving the way for Intel’s planned investments to finally start taking off.
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