Intel Secures $7.86 Billion in CHIPS Act Funding for U.S. Semiconductor Expansion

The Biden administration finalizes a reduced grant for Intel, citing a separate $3 billion defense contract and adjusted project timelines.

The U.S. Department of Commerce confirmed Intel's $7.86 billion CHIPS Act grant, reduced from the initially proposed $8.5 billion due to a $3 billion defense contract and delays in some projects.
The funding supports semiconductor manufacturing and advanced packaging facilities in Arizona, New Mexico, Ohio, and Oregon, expected to create up to 30,000 jobs.
Intel plans to invest nearly $90 billion in U.S. operations by the end of the decade as part of a broader strategy to revitalize domestic chip production and reduce reliance on Asian suppliers.
The grant is part of the CHIPS and Science Act, a 2022 bipartisan law allocating $39 billion in subsidies to bolster U.S. semiconductor manufacturing for economic and national security goals.
Intel has faced significant financial struggles, including layoffs and delays in key projects, but remains a central player in U.S. efforts to rebuild its chipmaking industry.