Intel, the semiconductor giant, is on the brink of receiving significant funding to fuel its expansion in the United States. The company is reportedly in talks with the Biden administration to secure more than $10 billion in federal grants and loans, primarily as a result of the CHIPS Act passed in 2022. These funds will support Intel’s ambitious $20 billion project in Licking County, Ohio, among other initiatives.
While Intel declined to comment on the specifics of the Bloomberg report, it is believed that the Biden administration will make an official announcement regarding the CHIPS funding for Intel during the State of the Union speech scheduled for March 7.
The CHIPS Act, formally known as “Creating Helpful Incentives to Produce Semiconductors in America,” was signed into law by President Biden in August 2022. It aims to revitalize domestic semiconductor production by providing financial incentives to companies like Intel.
The need for such subsidies is evident, as Intel and other semiconductor manufacturers face mounting costs associated with building new factories. The global shortage of semiconductors has further emphasized the urgency of localized production. By investing in the expansion of Intel’s operations in the United States, the Biden administration aims to restore the country’s semiconductor manufacturing capabilities.
In addition to the funding for Intel, the Biden administration has also announced that chip company Global Foundries will receive $1.5 billion under the CHIPS Act to support multiple projects in New York and Vermont. This development is part of the government’s broader effort to bolster the semiconductor industry within the country.
While Intel is making progress with its expansion projects in the United States, Europe, and Asia, the completion of the Licking County project has been delayed until potentially as late as 2027. Initially, Intel had set a target to commence semiconductor production at the site by 2025, contingent on market conditions and federal assistance.
As the Biden administration continues to prioritize the revival of domestic semiconductor manufacturing, the financial support provided through the CHIPS Act will play a crucial role in Intel’s expansion plans. This partnership between the government and one of the industry’s leaders marks a significant step towards reestablishing the United States as a prominent player in the global semiconductor market.
An FAQ about Intel’s Funding and the CHIPS Act
Q: What is Intel?
A: Intel is a semiconductor company and one of the industry leaders in the global semiconductor market.
Q: What funding is Intel receiving?
A: Intel is in talks with the Biden administration to secure more than $10 billion in federal grants and loans as part of the CHIPS Act.
Q: What is the CHIPS Act?
A: The CHIPS Act stands for “Creating Helpful Incentives to Produce Semiconductors in America.” It is a law signed by President Biden that aims to revitalize domestic semiconductor production by providing financial incentives to companies like Intel.
Q: Why does Intel need funding?
A: Intel and other semiconductor manufacturers face mounting costs in building new factories, and the global shortage of semiconductors has emphasized the need for localized production. The funding will support Intel’s ambitious expansion plans and help restore the United States’ semiconductor manufacturing capabilities.
Q: When will the official announcement be made?
A: The official announcement regarding the CHIPS funding for Intel is expected to be made during the State of the Union speech scheduled for March 7.
Q: Which other company is receiving funding under the CHIPS Act?
A: Chip company Global Foundries will receive $1.5 billion under the CHIPS Act to support multiple projects in New York and Vermont.
Q: What are Intel’s expansion projects?
A: Intel has expansion projects in the United States, Europe, and Asia, with the Licking County project in Ohio being one of the key initiatives.
Q: Why has the completion of the Licking County project been delayed?
A: The completion of the Licking County project has been delayed, potentially until 2027, due to market conditions and the need for federal assistance.
Q: What is the significance of the funding partnership between Intel and the government?
A: The funding partnership marks a significant step towards reestablishing the United States as a prominent player in the global semiconductor market and supports the Biden administration’s efforts to revive domestic semiconductor manufacturing.
Q: Is there any more information or related links available?
A: For more information on Intel and the CHIPS Act, you can visit Intel’s official website at https://www.intel.com and the official website of the White House at https://www.whitehouse.gov.
The source of the article is from the blog elektrischnederland.nl