After a long wait, Intel will finally receive the promised billions in subsidies under the U.S. Chips Act, providing a much-needed boost to the chip giant during a tumultuous period. The Chips Act, enacted in August 2022 by Joe Biden, aims to revitalize the American semiconductor industry with $52.7 billion in financial support for manufacturers committed to local chip production.
Intel, one of the largest beneficiaries, has faced delays but is undertaking extensive factory projects across the U.S., including Arizona, Ohio, Oregon, and New Mexico, with a colossal $90 billion investment. Initially set to receive $8.5 billion, Intel's subsidy has been adjusted to $7.86 billion due to a $3 billion contract with the Pentagon established last September.
Despite significant challenges, including a reported loss of $16.6 billion in the third quarter of 2024 and extensive restructuring plans, Intel will receive at least $1 billion in aid by the end of December. The company also plans to seek investment tax credits under the Chips Act, which could cover up to 25% of qualified investments exceeding $100 billion.
