This morning, the White Home and Intel introduced a PMT or “preliminary memorandum of phrases” for CHIPS Act funding. The deal would see multi-billion greenback packages alongside not less than three key vectors for Intel to construct new semiconductor manufacturing capabilities within the US. Pat Gelsinger hinted that the award was shut with U.S. Secretary of
Commerce Gina Raimondo on the Intel Foundry 2024 occasion. A couple of weeks later, we now have some particulars.
Intel Will get Enormous CHIPS Act Funding
Intel is getting billions in direct funding, however there’s extra going behind the award. The highlights are:
- $8.5B in direct funding
- As much as 25% a U.S. Treasury Division Funding Tax Credit score (ITC) on greater than $100B in certified investments
- Eligibility for as much as $11B in low curiosity federal loans
Collectively, it feels honest to say that the bundle outlined is price tens of billions of {dollars} however appears like it will give Intel advantages over the subsequent few years. Normally investments and awards are summed over one thing like a 5-year interval to make the numbers bigger.
Nonetheless, the sheer quantity of funding is massive contemplating the CHIPS Act licensed round $280B in funding to spice up home U.S. chip manufacturing, of which, solely $52.7B is appropriated. Of the bigger determine there was additionally $13B allotted for semiconductor analysis and coaching and round $174B for public sector analysis in science and expertise. That $174B was for organizations just like the Division of Vitality, NASA, and so forth.
Last Phrases
Intel mentioned it would use the funds to advance and broaden its chipmaking and packaging capabilities in Arizona, New Mexico, Ohio, and Oregon facilities. The press convention it taking place a couple of minutes from STH in Arizona. Since it’s an election yr, Arizona, New Mexico, and Oregon went to Biden in 2020 with Arizona flipping from a crimson to a blue state with that election. Intel and the White Home introduced that the funding was anticipated to create round 10,000 Intel jobs and one other 20,000 within the building sector.
It could sound unusual to say, however with Intel 18A nonetheless a couple of quarters from mass manufacturing, this CHIPS Act funding is likely to be Pat Gelsinger’s greatest achievement as Intel CEO to date. This provides Intel a giant monetary backing to go construct fabs and enhance home semiconductor manufacturing.
