Intel Secures $7.86B US Funding for Chip Projects

By Bobby Samwell • Thursday, November 28 06:02 • Permanent Link

Intel Corporation has announced that it has finalized a $7.86 billion funding award under the U.S. Chips and Science Act to advance its commercial semiconductor manufacturing and advanced packaging projects in Arizona, New Mexico, Ohio, and Oregon. This funding is in addition to the $3 billion contract awarded to Intel for the Secure Enclave Program. Intel plans to claim a 25% investment tax credit, which is expected to be up to 25% of qualified investments of more than $100 billion.

Intel's planned U.S. investments, including projects beyond those supported by chips, will support more than 10,000 company jobs, nearly 20,000 construction jobs, and more than 50,000 indirect jobs with suppliers and supporting industries.

The U.S. Department of Commerce has awarded Intel up to $7.86 billion in direct funding through the U.S. Chips and Science Act.

Intel has announced plans to invest more than $100 billion in the U.S. to expand chipmaking and advanced packaging capacity and capabilities, which will support tens of thousands of jobs and strengthen U.S. supply chains.

Intel is nearing completion of a historic pace of semiconductor node development to regain process technology leadership. Intel 18A, the company’s fifth process node in four years, is on track to launch in 2025. The company is finalizing a multiyear, multibillion-dollar commitment by Amazon Web Services to expand its existing partnership.

Intel has reported key milestones in advanced semiconductor manufacturing with the completed assembly of the industry’s first commercial high numerical aperture (high NA) extreme ultraviolet (EUV) lithography scanner and the receipt of an additional high NA tool installed at the company’s Hillsboro, Oregon, R&D site.

Intel has set aside $65 million to support the company’s efforts to create a more skilled semiconductor workforce. This includes $56 million to help train students and faculty at all education levels to support industry growth. Additionally, $5 million will be used to help increase childcare availability near Intel’s facilities, and $4 million will support Intel’s participation in the Chips Women in Construction Framework.

Following these announcements, the company's shares moved -1.7%, and are now trading at a price of $23.65. Check out the company's full 8-K submission here.

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