After much gnashing of teeth over its proposed $8.5 billion US CHIPS Act grant, officials announced early Tuesday the company will receive up to $7.86 billion in grant money instead for its manufacturing projects in Arizona, New Mexico, Ohio and Oregon.
The direct funding comes in addition to a $3 billion contract for Intel’s Secure Enclave contract to expand the manufacture of semiconductors for the US government to be used in defense-related applications. Intel also will receive a 25% investment tax credit for qualified investments that Intel puts at more than $100 billion.
“Leading edge semiconductors are once again being made on American soil,” CEO Pat Gelsinger said in a statement praising the grants. The CHIPS Act was a reflection of “strong bipartisan support for restoring American technology and manufacturing leadership.”
US Commerce Secretary Gina Raimondo said the award “is catalyzing Intel to make one of the largest investments in semiconductor manufacturing in history.”
Intel explained the reduction to $7.86 billion from $8.5 billion is the result of a congressional requirement to use CHIPS funding to pay for the $3 billion Secure Enclave program.
CHIPS for America, which administers the CHIPS Act funds, said its tally of awards now has reached $19 billion of $36 billion proposed. Some companies are rushing to finalize proposed grants awards into final contracts prior to the Jan. 20 inauguration of President-elect Donald Trump who has previously called the law “so bad.” The act passed in 2022, allocating $39 billion in total grants.
Intel’s direct fund grant of $7.86 is divided across four projects as described by NIST at Commerce:
- $1.86 billion for Intel in Hillsoboro, Oregon, for expansion of facilities that will use the first commercial High-NA EVU lithography equipment.
- $500 million for Intel in Rio Rancho, New Mexico, to support modernization of two existing fabs into an advanced packaging facility.
- $1.5 billion for Intel in New Albany, Ohio, for creation of a new regional chipmaking ecosystem with a new leading edge logic fab to produce the Intel 14A node and future nodes.
- $3.94 billion for Intel in Chandler, Arizona, to build two new leading edge logic fabs and modernize one existing fab to increase high volume production of Intel 18A, which will rely on RibbonFET gate-all-around transistors and PowerVia backside power delivery.