Intel gets up to $8.5 billion in subsidies to make chips in the United States

The United States announced that the US federal government will provide up to $8.5 billion in support to Intel. Intel will use the money to build new factories and upgrade existing chip factories in different states.

Intel is scheduled to invest $100 billion in chip production in the United States over the next five years. Government It will contribute a maximum of $8.5 billion directly in this regard. Through investments and subsidies, Intel is launching two new ones Leading edge Building manufacturing plants in Chandler, Arizona, where existing plants are also being modernized. This is where Intel wants to make chips based on the 18A process, and it's where its first 18A product, the Clearwater Forest Xeon CPUs, should come from.

In New Albany, Ohio, two are needed Leading edge logicTwo manufacturing plants are being built and converted in Rio Rancho, New Mexico into advanced packaging plants. A development center should be established in Hillsboro, Oregon for High NA EUV equipment, among other things.

Of this money, $50 million is allocated to train Intel employees who will work in and build the factories. The government says the support and Intel's investments will create 30,000 jobs, including 20,000 jobs to build factories. In addition to the $8.5 billion in direct support, Intel can borrow up to $11 billion through the CHIP Act.

The subsidy falls under the Chips and Science Act and is intended to increase chip production in the United States. It is the largest subsidy under the law to date. US President Joe Biden signed the chip law in 2022 and includes a $52.7 billion support pot. The current agreement is not yet binding and depends on a Due diligence-research.