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Intel will receive $7.9 billion in federal subsidies from the Biden administration.
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The US Department of Commerce announced the subsidy, part of the CHIPS Act, on Tuesday.
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President-elect Donald Trump has criticized the CHIPS Act in favor of tariffs.
Intel will receive about $7.9 billion in federal subsidies, the U.S. Commerce Department said Tuesday, as the Biden administration finalizes CHIPS Act agreements before Donald Trump takes office.
It is more than $600 million less than President Joe Biden’s preliminary $8.5 billion grant announced in March. Intel will receive less than initially promised because it also received a separate $3 billion grant to produce chips for the military, the Commerce Department told The New York Times.
The chip giant is on track to receive at least $1 billion of the total subsidy before the end of this year, a senior administration official told Bloomberg.
President-elect Trump has previously criticized the CHIPS Act and suggested he would favor tariffs to boost semiconductor production on U.S. soil. This has led the Biden administration to scramble to complete billions of dollars in payments before the end of the year.
The CHIPS Act money will help Intel increase its semiconductor production in the US. It is expected to invest nearly $90 billion in the US by the end of the decade.
U.S. Secretary of Commerce Gina Raimondo said in a press release that Intel’s investments in Arizona, New Mexico, Ohio and Oregon would boost U.S. innovation and that the company is playing an important role in the “revitalization” of the U.S. semiconductor industry. US.
“Strong bipartisan support for restoring American leadership in technology and manufacturing drives historic investments that are critical to the nation’s long-term economic growth and national security,” said Pat Gelsinger, CEO from Intel.
Intel’s stock price is down nearly 50% this year. It has suffered billions in losses and faced with a series of challenges, including layoffs.
The Wall Street Journal reported in September that Qualcomm was interested in acquiring Intel. However, takeover interest has since cooled due to some complications related to the acquisition of the entire company, Bloomberg reported on Tuesday, citing people familiar with the matter.
Intel did not immediately respond to Business Insider’s request for comment, which was made outside of normal business hours.
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