Intel receives $8.5B grant under CHIPS Act

Intel received an $8.5 billion grant, the largest one awarded under the CHIPS Act so far, and a loan of another $11 billion to boost the production of semiconductors.

The tech giant will use the funds to have manufacturing facilities across states, including Arizona, Ohio, New Mexico and Oregon.

The initiative is a cornerstone of Biden’s agenda to promote domestic industry and infrastructure, aiming to reduce reliance on foreign chip manufacturers, particularly in Asia.

The bipartisan-baked CHIPS Act of 2022 allocated $52 billion in grants and $75 billion in loans to support chip production and research.

Critics point out that other large chip manufacturing projects nationwide, from Taiwan’s TSMC, are also expected to receive support under it. Proponents argue that federal support is essential to jumpstart domestic manufacturing in a highly profitable industry.