Intel Corporation (INTC) is reportedly in discussions with the Biden administration to receive over $10 billion in subsidies. This potential funding marks the largest allocation under a plan to revive semiconductor manufacturing in the United States, Bloomberg reported.
The award package for Intel is anticipated to comprise of loans and direct grants, the report read. Discussions are ongoing, Bloomberg noted.
The incentives will come from the 2022 Chips and Science Act, which allocated $39 billion in direct grants, alongside loans and loan guarantees worth $75 billion. Its aim is to entice leading semiconductor firms to produce chips within the U.S., marking a shift after years of overseas manufacturing, Bloomberg added.
The Commerce Department also unveiled two smaller Chips Act grants. Secretary Gina Raimondo indicated last week a forthcoming series of larger announcements within the next six to 12 weeks.
Earlier this week, Intel was in the news amid reports of its plans to secure a minimum of $2 billion in equity to finance the construction of a semiconductor fabrication plant in Ireland. The leading chipmaker, collaborating with a financial adviser, has initiated the process of engaging with prospective investors, reported Bloomberg.
This effort to raise funds comes on the heels of Intel’s 2022 agreement with Brookfield Infrastructure Partners, which saw Brookfield commit up to $15 billion for a 49% share in Intel’s manufacturing expansion at its Ocotillo campus in Chandler, Arizona.
In conclusion, Intel Corporation’s discussions with the Biden administration for over $10 billion in subsidies highlight the ongoing efforts to revive semiconductor manufacturing in the United States. This potential funding, if secured, will play a crucial role in advancing Intel’s operations and ensuring the production of chips within the country.
