Semiconductor Giant Intel Receives $2.2 Billion in Federal Grants
Intel Receives First Tranche of Grants
Semiconductor giant Intel Corporation has already received $2.2 billion in federal grants from the U.S. Department of Commerce through the U.S. CHIPS and Science Act, the company shared during its Thursday earnings call. According to Dave Zinsner, Intel’s co-interim CEO, executive vice president, and CFO, the company received the first tranche of $1.1 billion in federal grants at the end of 2024 and an additional $1.1 billion in January 2025.
Grants Based on Milestones
These grants are based on reaching certain milestones, Zinsner added. Another $5.66 billion has yet to be dispersed. The company was awarded a total of $7.86 billion in federal grants to build semiconductors in the U.S. in November as part of the U.S. Department of Commerce’s U.S. CHIPS and Science Act.
Plan for Grant Funding
When Intel was awarded its grant money in November, the company said it was planning to put the funds toward manufacturing and advanced packaging, or toward techniques to assemble and integrate multiple semiconductor chips into one package. This will be carried out at Intel facilities across Arizona, New Mexico, Ohio, and Oregon.
Background on the U.S. CHIPS and Science Act
The U.S. CHIPS and Science Act was signed into federal law by former president Joe Biden in 2022 in an effort to increase domestic semiconductor manufacturing. The act set aside $52 billion in subsidies for domestic chip manufacturers.
Uncertainty under the Trump Administration
While already two years old, the CHIPS Act faces some uncertainty under the Trump administration. If President Donald Trump’s federal funding freeze, which is currently being blocked by a federal judge, does go into effect, it would affect the Commerce Department employees focused on the CHIPS Act, according to Bloomberg reporting.
Intel’s Outlook
Zinsner had a rosier outlook, though. When asked by an analyst, he said that Intel has already been in communication with the Trump administration and "feels really good" about the administration’s outlook on bringing semiconductor manufacturing back to the United States.
Conclusion
In conclusion, Intel has received significant funding from the U.S. Department of Commerce to support its efforts in building semiconductors in the U.S. The company has already received $2.2 billion in grants and plans to use the funds to advance its manufacturing and packaging capabilities.
FAQs
Q: What is the total amount of grant funding Intel has received?
A: Intel has received $2.2 billion in federal grants from the U.S. Department of Commerce through the U.S. CHIPS and Science Act.
Q: How much of the grant funding has been dispersed?
A: Intel has received the first tranche of $1.1 billion in federal grants at the end of 2024 and an additional $1.1 billion in January 2025. Another $5.66 billion has yet to be dispersed.
Q: What is the purpose of the grant funding?
A: The grant funding is intended to support Intel’s efforts in building semiconductors in the U.S. The company plans to use the funds to advance its manufacturing and packaging capabilities.
Q: Is the CHIPS Act facing uncertainty under the Trump administration?
A: Yes, the CHIPS Act faces some uncertainty under the Trump administration. If President Donald Trump’s federal funding freeze, which is currently being blocked by a federal judge, does go into effect, it would affect the Commerce Department employees focused on the CHIPS Act.
