Intel Secures Record $7.9B Federal Grant to Revive US Chip Manufacturing
Intel’s ambitious plan to revitalize American chip manufacturing just got a boost from the Biden administration. The semiconductor giant secured the largest direct subsidy under the CHIPS Act, a $7.9B grant, as part of the US government’s push to strengthen domestic semiconductor production. While smaller than the initially proposed $8.5B deal, this funding represents a critical lifeline for Intel as it battles to regain its competitive edge.
- The funding will help Intel’s expansion across four states, potentially creating up to 30K jobs, though the company scaled back its total US investment from $100B to $90B by 2030.
- As part of the agreement, Intel must abstain from stock buybacks for five years and will receive at least $1B this year upon meeting specific milestones.
Racing against time: With President-elect Trump’s administration on the horizon and his criticism of the CHIPS program as “so bad,” the Commerce Department is accelerating efforts to finalize deals. The Intel agreement accounts for nearly half of the $39B in available grants, highlighting the government’s commitment to reshoring semiconductor manufacturing — even as Intel grapples with its biggest quarterly loss since its founding in 1968.
