Intel Receives $2.2B in Federal Grants for Chip Production

Intel Receives Initial Funding from CHIPS Act

Intel Corporation, a leading semiconductor manufacturer, has been granted $2.2 billion in federal funding through the U.S. Department of Commerce. This allocation stems from the U.S. CHIPS and Science Act.

Grant Disbursement Details

According to Dave Zinsner, Intel’s co-interim CEO and CFO, the company received an initial $1.1 billion in funding at the close of 2024. A further $1.1 billion was disbursed in January 2025.

The release of these funds is contingent upon the achievement of pre-defined milestones. An additional $5.66 billion remains available for distribution.

Total Funding and Allocation

In November, Intel was authorized to receive a total of $7.86 billion in federal grants. These funds are designated for the expansion of semiconductor production within the United States.

While substantial, this figure is slightly lower than the initially projected $8.5 billion. The funding will be utilized for both manufacturing processes and advanced packaging techniques.

Geographic Impact of Investment

The allocated resources will be directed towards Intel facilities located across several states, including Arizona, New Mexico, Ohio, and Oregon. These investments will focus on assembling and integrating multiple semiconductor chips into single packages.

The CHIPS and Science Act

The U.S. CHIPS and Science Act was signed into law in 2022 by former President Joe Biden. The primary goal of this legislation is to bolster domestic semiconductor manufacturing capabilities.

The Act allocates $52 billion in subsidies to support domestic chip manufacturers, aiming to reduce reliance on foreign production.

Potential Impact of a Change in Administration

Despite being enacted two years ago, the future of the CHIPS Act faces some uncertainty with the current administration. A proposed federal funding freeze, currently under legal challenge, could impact the Commerce Department personnel involved in the Act’s implementation.

Intel’s Perspective on the Future

Zinsner expressed optimism regarding continued support from the Trump administration. He stated that Intel has already engaged in discussions and anticipates a favorable outlook concerning the return of semiconductor manufacturing to the U.S.

Intel anticipates ongoing collaboration with the administration to reinforce U.S. technological and manufacturing leadership.

“We look forward to continued engagement…,” Zinsner affirmed during the earnings call.