Intel Corporation has locked in an eye-popping $8.9 billion of that new money, all thanks to the administration’s cudgel – mostly from grants awarded months ago. This funding package includes $5.7 billion transferred from the CHIPS Act. It includes a further $3.2 billion pulled from the Secure Enclave program. The deal provides the semiconductor behemoth with a further multi-billion dollar financial windfall. It wants to boost its manufacturing and technology presence in the U.S.
The CHIPS Act funding is just one piece of a larger effort to combat challenges in the semiconductor supply chain, particularly by increasing U.S. semiconductor manufacturing. In addition to those original grants, Intel has been awarded $2.2 billion in CHIPS Act funding. The company has now billed the government an additional $850 million in reimbursement, a figure still unpaid by the federal government.
Lip-Bu Tan, the Chief Executive Officer of Intel, said in prepared remarks that the company appreciated support from the Biden administration. He stated, “We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership.”
Even the deal itself has been controversial. Former President Donald Trump was the one to negotiate the original deal with Tan. More recently, his ire has been focused on the CHIPS Act and Tan’s leadership. Trump labeled the CHIPS Act as “a horrible, horrible thing” and expressed a desire to “get rid” of it altogether.
Trump also dismissed Tan on social media, using his social media platform, Truth Social, to claim that Tan has conflicts of interest. He even insisted that Tan be fired on the spot. He claimed, “The United States paid nothing for these shares,” further emphasizing his discontent with the current administration’s dealings with Intel.
“This is a great Deal for America and, also, a great Deal for INTEL.” – Donald Trump
Even with Trump’s disparagements of the deal, the Biden administration pushed ahead and finalized the agreement with Intel. Their goals are to increase domestic semiconductor manufacturing capacity and increase technology development momentum. Supporters claim the funding is critical to keeping the U.S. competitive in a fast-changing, global marketplace.
