Intel gets a $7.9 billion grant from Biden administration

Under the 2022 U.S. CHIPS and Science Act, the Department of Commerce has awarded Intel $7.86 billion in direct funding for its commercial semiconductor manufacturing projects. The funding will support advanced packaging initiatives at Intel’s sites in Arizona, New Mexico, Ohio, and Oregon. This marks the largest direct funding ever granted by the U.S. government to a company and follows a preliminary memorandum of terms announced in March 2024.

The grant is part of Intel's ongoing commitment to restoring America’s leadership in semiconductor production, a priority that is expected to generate tens of thousands of jobs and enhance national security. Intel anticipates that its efforts under the CHIPS Act will create more than 10,000 direct company jobs, nearly 20,000 construction jobs, and over 50,000 indirect jobs in related industries.

Intel CEO Pat Gelsinger emphasized the significance of the funding, noting, “With Intel 3 already in high-volume production and Intel 18A set to follow next year, leading-edge semiconductors are once again being made on American soil.” He highlighted that these investments will drive both economic growth and national security by increasing domestic chip production.

In addition to the grant, Intel will also benefit from a 25% investment tax credit, which will support the company’s plans to invest over $100 billion in U.S.-based semiconductor manufacturing and R&D over the coming years.

Intel’s ongoing projects, including the Secure Enclave program, which received a separate $3 billion contract, are aimed at meeting the growing demand for trusted, secure semiconductor manufacturing. The company’s advancements in next-generation technologies, such as the Intel 3 and Intel 18A process nodes, reinforce Intel’s leadership in the semiconductor industry.