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Intel (NASDAQ:INTC) engages in discussions with the Biden administration for over $10 billion in subsidies aimed at bolstering semiconductor production in the United States. The proposed support would likely consist of a combination of loans and direct grants, as reported by Bloomberg through sources familiar with the matter.
The subsidies are part of the 2022 Chips and Science Act, which allocated $39 billion in direct grants, along with loans and loan guarantees totaling $75 billion to facilitate domestic semiconductor manufacturing.
Both Intel (INTC) and the Commerce Department declined to comment when approached by Bloomberg for input on the negotiations.
The breakdown of the award, whether it heavily leans toward grants or loans, remains undisclosed according to the Wall Street Journal.
Notably, this development follows a recent report by the WSJ predicting that the Biden administration would grant significant subsidies to Intel (INTC), Taiwan Semiconductor (TSM), and other chipmakers in the upcoming weeks, with the goal of establishing new production facilities in the U.S. The announcement of these subsidies was anticipated to precede President Biden’s State of the Union address on March 7, as per WSJ’s information, although a separate report from Bloomberg suggests a potential announcement by the end of March. Additional beneficiaries expected to receive subsidies, as indicated by industry executives to the WSJ, include Micron (MU), Texas Instruments (TXN), and GlobalFoundries (GFS).
Revisiting August, which marked the first anniversary of the U.S. CHIPs Act, the White House lauded its impacts and disclosed that over 460 companies had submitted statements of interest for funding.