Intel’s $7.86 Billion Boost: A Closer Look at Federal Support for Chip Manufacturing

The U.S. CHIPS and Science Act, signed into law by former President Joe Biden in 2022, aims to bolster domestic semiconductor manufacturing. As part of this initiative, the act allocates $52 billion in subsidies for U.S. chip manufacturers. Intel, a leading player in the semiconductor industry, recently received a significant portion of this funding, amassing a total of $7.86 billion in federal grants intended for semiconductor production within the United States.

In November, the U.S. Department of Commerce awarded Intel these grants under the U.S. CHIPS and Science Act. The first tranche of $1.1 billion was released at the end of 2024, with another $1.1 billion following in January 2025. Altogether, Intel has received $2.2 billion thus far, with an additional $5.66 billion yet to be disbursed. These funds are earmarked for Intel facilities across Arizona, New Mexico, Ohio, and Oregon.

Intel's co-interim CEO, executive vice president, and CFO, Dave Zinsner, emphasized that the grants are contingent upon reaching specific milestones. He stated that Intel plans to utilize these funds for manufacturing and advanced packaging—techniques crucial for assembling and integrating multiple semiconductor chips into a single package.

"Feels really good," said Dave Zinsner regarding the grant disbursements.

The U.S. CHIPS and Science Act faces potential challenges under the Trump Administration. If President Donald Trump's proposed federal funding freeze comes into effect, it could impact Commerce Department employees working on the CHIPS Act. However, for now, a federal judge has blocked the funding freeze, allowing the program to proceed uninterrupted.

"We look forward to continued engagement with the Trump Administration as we advance this work and support their efforts to strengthen U.S. technology and manufacturing leadership," remarked Dave Zinsner.

Intel's financial boost through these grants underlines the strategic importance of enhancing domestic chip production capabilities. The funds are expected to support Intel's endeavors in maintaining its leadership within the technology and manufacturing sectors.