Semiconductor big Intel Company has already acquired $2.2 billion in federal grants from the U.S. Division of Commerce via the U.S. CHIPS and Science Act, the corporate shared throughout its Thursday earnings name.
Dave Zinsner, Intel’s co-interim CEO, govt vp, and CFO, stated the Silicon Valley-based firm acquired the primary tranche of $1.1 billion in federal grants on the finish of 2024 and a further $1.1 billion in January 2025.
These grants are based mostly on reaching sure milestones, Zinsner added. One other $5.66 billion has but to be dispersed.
The corporate was awarded a complete of $7.86 billion in federal grants to construct semiconductors within the U.S. in November as a part of the U.S. Division of Commerce’s U.S. CHIPS and Science Act. Whereas a large sum, this complete was lower than the unique $8.5 billion estimate.
When Intel was awarded its grant cash in November, the corporate stated it was planning to place the funds towards manufacturing and superior packaging, or towards methods to assemble and combine a number of semiconductor chips into one package deal. This might be carried out at Intel services throughout Arizona, New Mexico, Ohio, and Oregon.
The U.S. CHIPS and Science Act was signed into federal regulation by former president Joe Biden in 2022 in an effort to extend home semiconductor manufacturing. The act put aside $52 billion in subsidies for home chip producers.
Whereas already two years previous, the CHIPS Act faces some uncertainty beneath the Trump administration. If President Donald Trump’s federal funding freeze, which is at present being blocked by a federal choose, does go into impact, it could have an effect on the Commerce Division workers targeted on the CHIPS Act, in line with Bloomberg reporting.
Zinsner had a rosier outlook, although. When requested by an analyst, he stated that Intel has already been in communication with the Trump administration and “feels actually good” concerning the administration’s outlook on bringing semiconductor manufacturing again to the USA.
“We look ahead to continued engagement with the Trump administration as we advance this work and help their efforts to strengthen U.S. expertise and manufacturing management,” Zinsner stated earlier on the decision.