Semiconductor large Intel Corporation has already obtained $2.2 billion in federal grants from the U.S. Department of Commerce by the U.S. CHIPS and Science Act, the corporate shared throughout its Thursday earnings name.
Dave Zinsner, Intel’s co-interim CEO, govt vice chairman and CFO, mentioned the Silicon Valley-based firm obtained 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. Another $5.66 billion has but to be dispersed.
The firm 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. Department of Commerce’s U.S. CHIPS and Science Act. While 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 mentioned it was planning to place the funds towards manufacturing and superior packaging, or towards strategies to assemble and combine a number of semiconductor chips into one bundle. This shall be carried out at Intel services throughout Arizona, New Mexico, Ohio, and Oregon.
The U.S. CHIPs and Science Act was signed into federal legislation 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.
While already two years previous, the CHIPs Act faces some uncertainty underneath 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 might have an effect on the Commerce Department workers centered on the CHIPS Act, in keeping with Bloomberg reporting.
Zinsner had a rosier outlook although. When requested by an analyst, he mentioned 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 United States.
“We sit up for continued engagement with the Trump Administration as we advance this work and assist their efforts to strengthen U.S. expertise and manufacturing management,” Zinsner mentioned, earlier on the decision.
