Intel and U.S. ink funding contract — $7.86 billion under the CHIPS Act, $3 billion from Pentagon

Intel
(Image credit: Intel)

Intel and the U.S. government on Tuesday officially inked funding deal. Intel will get up to $7.86 billion in funding from the U.S. Department of Commerce under the CHIPS and Science Act as well as get a $3 billion contract under the Secure Enclave program from the Department of Defense. The company is also eligible for loan guarantees and a 25% investment tax credits of qualified investment of $100 billion.

The $7.86 billion CHIPS Act funding will be used to support Intel's semiconductor manufacturing and advanced packaging projects in Arizona (where Intel's most advanced Fab 52 and Fab 62 are located), New Mexico (where Intel's most advanced packaging facilities are), Ohio (home for Intel's future fabs), and Oregon (the company's major hub for semiconductor R&D). These projects are central to Intel's plan to build and package chips using leading-edge process technologies in the U.S.

"The CHIPS for America program will supercharge American innovation and technology and make our country more secure — and Intel is playing an important role in the revitalization of the U.S. semiconductor industry through its unprecedented investments across Arizona, New Mexico, Ohio, and Oregon," said U.S. Secretary of Commerce Gina Raimondo. "Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award is enabling Intel to drive one of the most significant semiconductor manufacturing expansions in U.S. history."

Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.