US considering more than $10 billion in subsidies for Intel as part of CHIPS act to secure domestic semiconductor manufacturing
The US Government is considering providing $10 billion worth of subsidies to Intel to secure semiconductor manufacturing on US home soil.
A report from Bloomberg notes that currently, the majority of semiconductors used in the US for military and civilian application are manufactured in areas of Eastern Asia susceptible to Chinese sabotage and espionage, such as Taiwan.
The CHIPS act has set aside $53 billion to secure domestic semiconductor manufacturing, with firms such as Micron, Samsung, and the Taiwan Semiconductor Manufacturing Company in the crosshairs for funding.
Subsidized chips are on the table
Intel is apparently planning to use potential subsidies to build additional semiconductor manufacturing at its sites in Arizona and New Mexico. According to Bloomberg, Intel will likely receive loans and direct grants as part of its subsidies, but both Intel and the US Department of Commerce have declined to comment.
Intel also has plans to construct a chip factory in Ohio that is set to be the world’s largest chip manufacturing plant at almost 1,000 acres with a potential eight chip factories. However, Intel is planning to delay the completion of the site until 2026 according to the Wall Street Journal.
US Commerce Secretary Gina Raimondo previously designated the funding as a “national security investment,” but has also faced criticism from across the political spectrum for giving too much of the CHIPS funding to Intel instead of further diversifying semiconductor suppliers.
