Intel Talks To The Biden Administration About $10 Billion In Subsidies

(CTN News) – Intel Corp. may receive more than $10 billion in subsidies from the Biden administration, people familiar with the matter say, in the largest award ever under a plan to bring semiconductor manufacturing back to the US.

According to the people, Intel’s award package is expected to include both loans and grants. They asked not to be identified because the decision is private. In their statement, they stressed that negotiations are still ongoing.

Comments from the Commerce Department and Intel were not available.

The 2022 Chips and Science Act set aside $39 billion in direct grants as well as loans and loan guarantees worth $75 billion to attract the top semiconductor companies back to the US after decades abroad.

Stocks were down 13% this year through the close. By 2030, the administration wants to establish at least two leading-edge manufacturing clusters in the US following the investment of more than $230 billion by chip companies since President Biden took office.

Two smaller Chips Act grants have already been announced by the Commerce Department. Gina Raimondo said last week that there would be a “drumbeat of even bigger announcements” in the next six to 12 weeks.

In recent years, Intel has fallen behind Asian rivals Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., which are building their own US manufacturing facilities in Arizona and Texas.

A key industry voice has been Intel CEO Pat Gelsinger in lobbying for government support for the sector, and the firm has stated it is dependent on government funding.

Intel plans to invest $3.5 billion in New Mexico, expand its Arizona facility by $20 billion, and build a $20 billion facility in Ohio.

As of now, Intel’s award isn’t clear in terms of grants vs. loans. There are company-specific loan terms, the people said, as well as benchmarks that will be set by the Commerce Department to disburse the funding.

Commercial production of Intel’s projects has not yet begun. According to a company spokesperson, significant progress has been made in Ohio since the Wall Street Journal reported the delay from 2025 to 2026.

According to an administration official, the timeline is consistent with Intel’s initial projections and based on market factors rather than award announcements.

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