Intel To Get US$7.8 Bln Government Grant For US Semiconductor Projects

WASHINGTON, Nov 27 (Bernama-dpa) -- The US government has offered Intel up to US$7.8 billion in direct funding for its commercial semiconductor manufacturing projects, which is expected to create thousands of jobs, reported German news agency dpa.

The latest award, together with a 25 per cent investment tax credit which the firm plans to claim, would support the chip maker's plans to invest more than US$100 billion in the US.

Intel and the Biden-Harris Administration announced on Tuesday that the US Department of Commerce has agreed to the terms of the grant under the US CHIPS and Science Act. The department will disburse the funds based on Intel's completion of project milestones.

With the offered funding, Intel expects to advance commercial semiconductor manufacturing and advanced packaging projects in Arizona, New Mexico, Ohio and Oregon.

According to Intel, the planned US investments, including projects beyond those supported by CHIPS, would support more than 10,000 company jobs, nearly 20,000 construction jobs, and more than 50,000 indirect jobs with suppliers and supporting industries.

Since the passage of the CHIPS and Science Act more than two years ago, Intel has announced plans to invest more than US$100 billion in the US to expand chipmaking and advanced packaging capacity.

The US government is providing financial support to chipmakers as part of efforts to enhance the resilience of the domestic semiconductor supply chain and bolster the country’s global competitiveness in advanced technology sectors.

--BERNAMA-dpa