HomeWorldUS may provide over $10 billion in subsidies to Intel, Bloomberg reports.

US may provide over $10 billion in subsidies to Intel, Bloomberg reports.

US Considering Over $10 Billion in Subsidies for Intel

Biden Administration in Talks to Award Subsidies to Intel Corp

The Biden administration is in discussions to grant more than $10 billion in subsidies to Intel Corp, according to sources familiar with the matter, as reported by Bloomberg News on Friday. The talks are ongoing, and Intel’s award package is expected to include both loans and direct grants.

Department of Commerce and Intel Decline to Comment

Negotiations are underway, but both the U.S. Department of Commerce, responsible for the disbursement of CHIPS Act funds, and Intel have declined to provide any comments on the matter.

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Plan to Boost Semiconductor Manufacturing

The U.S. Department of Commerce has already announced two smaller CHIPS Act grants, with plans to make several funding awards within two months from the government’s $39 billion program to boost semiconductor manufacturing. The semiconductor fund aims to subsidize chip production and related supply chain investments, with the awards intended to help build factories and increase production.

Intel’s Ambitious Plans

Intel is planning to invest tens of billions of dollars to fund chip factories in Arizona, New Mexico, and a new site in Ohio, which the company believes could become the world’s largest chip plant.

Challenges and Delays

However, the Wall Street Journal reported that Intel intends to delay the completion of the Ohio site until 2026 due to a slowdown in the chip market and a slow rollout of federal dollars. It is uncertain whether a wave of federal funds this year will accelerate these plans, or the plans of other companies such as Taiwan Semiconductor Manufacturing Co, Micron, and Samsung Electronics, all of which are also constructing new chip factories in the U.S.

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Future of Semiconductor Industry

As the semiconductor industry continues to evolve, the allocation of subsidies and the construction of new chip factories will play a crucial role in shaping the future landscape of technology and manufacturing in the United States.

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