Intel receiving federal grants and loans under the CHIPS Act
Intel is set to receive up to $8.5 billion in federal grants and potentially $11 billion in loans under the CHIPS Act to support semiconductor manufacturing and research facilities in multiple U.S. states. The company aims to become a leading-edge manufacturer by 2026 and create thousands of jobs through facility construction and chip manufacturing.
Key Points
- Intel set to receive up to $8.5 billion in federal grants and potentially $11 billion in loans under the CHIPS Act
- Funds to be used for manufacturing and research facilities in Arizona, New Mexico, Ohio, and Oregon
- Intel aims to become a leading-edge manufacturer by 2026 and create thousands of jobs
Pros
- Boost to semiconductor manufacturing in the U.S.
- Creation of jobs through facility construction and chip manufacturing
Cons
- Competition from companies like Nvidia, AMD, Qualcomm, and TSMC
- Nonbinding nature of the agreement between Intel and the White House