The US government is considering granting subsidies worth $10 billion to Intel to ensure semiconductor manufacturing on US soil.
A Bloomberg report notes that currently, most semiconductors used in the US for military and civilian applications are manufactured in areas of East Asia susceptible to Chinese sabotage and espionage, such as Taiwan.
The CHIPS Act has set aside $53 billion to secure domestic semiconductor manufacturing, with companies like Micron, Samsung and Taiwan Semiconductor Manufacturing Company being targeted for funding.
Subsidized chips are on the table
Intel reportedly plans to use potential subsidies to build additional semiconductor manufacturing at its sites in Arizona and New Mexico. According to Bloomberg, Intel will likely receive direct loans and grants as part of its subsidies, but both Intel and the US Department of Commerce declined to comment.
Intel also plans to build a chip factory in Ohio that will be the world's largest chip manufacturing plant at nearly 1,000 acres with eight potential chip factories. However, Intel plans to delay completion of the site until 2026, according to the Wall Street Journal.
US Commerce Secretary Gina Raimondo previously designated the funding as a “national security investment,” but has also faced criticism from across the political spectrum for giving too much CHIPS funding to Intel instead of further diversifying suppliers. of semiconductors.
