US CHIPS Act Funding for Intel

On March 20, 2024, the U.S. Department of Commerce and Intel Corporation announced a preliminary memorandum of terms under which Intel will receive approximately $8.5 billion in direct funding under the CHIPS and Science Act. Funding will help advance Intel’s critical semiconductor manufacturing and research and development projects at sites in Arizona, New Mexico, Ohio and Oregon – U.S. locations where the company produces some of the world’s most advanced chips and semiconductor packaging technologies.

CHIPS Act funding aims to increase U.S. semiconductor manufacturing and research and development capabilities, especially in leading-edge semiconductors.

Intel is the only American company that both designs and manufactures leading-edge logic chips. The company’s strategy is centered on three core elements – establishing process technology leadership, building a more resilient and sustainable global semiconductor supply chain, and creating a world-class foundry business – all of which align with the objectives of the CHIPS Act to bring manufacturing and technology leadership back to the United States.

Together, CHIPS Act funding and Intel’s previously announced plans to invest more than $100 billion in the U.S. over five years constitute one of the largest public-private investments ever made in the U.S. semiconductor industry.