Intel Corporation has secured a significant sum of $2.2 billion in federal grants, as part of the U.S. CHIPS and Science Act, the company announced during its earnings call on Thursday.

Co-interim CEO and CFO Dave Zinsner confirmed that the semiconductor giant received an initial $1.1 billion in December 2024, with another $1.1 billion disbursed in January 2025. These grants are tied to the achievement of specific milestones related to semiconductor manufacturing.

The total federal grant Intel was awarded amounts to $7.86 billion, though this is slightly less than the original estimate of $8.5 billion. The company has yet to receive an additional $5.66 billion. Intel plans to use these funds to support the expansion of its manufacturing capabilities and advanced packaging processes across several of its facilities in the United States, including in Arizona, New Mexico, Ohio, and Oregon.

The U.S. CHIPS and Science Act, signed into law by former President Joe Biden in 2022, was designed to boost domestic semiconductor manufacturing. It set aside $52 billion in subsidies for U.S.-based chip manufacturers. These grants are seen as a step toward reducing reliance on overseas semiconductor production, with a particular focus on supporting U.S. innovation and manufacturing leadership.

Despite potential political challenges, Intel's outlook remains optimistic. Zinsner expressed confidence about the future of the CHIPS Act, even with the Trump administration's possible changes to the federal funding structure. While a funding freeze under the Trump administration remains blocked by a federal judge, Intel is continuing to engage with the administration to strengthen the semiconductor industry in the U.S.

As Intel moves forward with its expansion plans, the company remains committed to advancing U.S. semiconductor production and fostering a more competitive technology landscape.

SOURCE: TECHCRUNCH | PHOTO: INTEL

This article was created with AI assistance.