It has been a long battle for Intel, which has finally managed to secure the subsidies granted under the Chips & Science Act. However, the aid package is smaller than expected, the reason being that the company has obtained another grant from the US government.
Chips & Science Act: Intel receives $7.86 billion from the government!
The Chips & Science Act is a US law granting subsidies to companies wishing to innovate and produce semiconductors in the United States. The aim of all this is to reduce the United States’ dependence on foreign foundries for the production of this type of component.
However, the money does not come with no strings attached. For example, Intel will not be able to make any share purchases with it for five years. Another condition cited by our colleagues is that “excess profits from the subsidy must be shared with the government. The aim is not to subsidise a company so that it spends the money elsewhere than in the United States”.
In any case, the blueprints provide for a broad investment plan in the US of $100 billion. This will involve opening new production sites and upgrading existing plants. The aim is to increase production capacity while offering ever more advanced processes.
Intel will receive its first billion by the end of 2024. However, the $7.86 billion in aid is still less than the $8.5 billion initially announced. The reason for the drop is simply that the Blue have already received $3 billion from a contract with the Pentagon.
