Intel co-interim CEO Dave Zinsner said the Silicon Valley-based company acquired the first tranche of $1.1 billion in federal grants at the end of 2024. They also get an additional $1.1 billion in January 2025.
These two grants are setting a different milestone according to his statements. He also added another $5.66 billion yet to be dispersed.
In November, the company received $7.86 billion in federal grants for semiconductor production in the U.S. under the U.S. CHIPS and Science Act from the Department of Commerce. Although a large amount, this figure was lower than the initial $8.5 billion projection.
In November, when Intel received its grant money, the company announced its intention to allocate the funds for manufacturing and advanced packaging, as well as for methods to combine and integrate several semiconductor chips into a single package. This will be conducted at Intel locations throughout Arizona, New Mexico, Ohio, and Oregon.
According to Bloomberg the U.S. CHIPS and Science Act was also signed federal law by former president Joe Biden in 2022 toears old, the CHIPS Act faces some uncertainty under the Trump administration. If President Donald Trump’s freeze the entire funding, which is currently being blocked by a federal judge, does go into effect. It would affect the Commerce Department employees focused on increasing domestic semiconductor manufacturing. The act set aside $52 billion in subsidies for domestic chip manufacturers.
Under the Trump administration, there is some ambiguity about the CHIPS Act. A federal judge is presently blocking President Donald Trump’s government spending freeze, which would have an impact on the Commerce Department staff members who are primarily focused on the CHIPS Act.
Zinsner said
“We look forward to continued engagement with the Trump administration as we advance this work and support their efforts to strengthen U.S. technology and manufacturing leadership,”.
