Intel will receive less money from the US CHIPS program than planned. The reduction in the grant is influenced by a new $3.5 billion military contract and concerns about future demand.
The US government plans to cut the grant for Intel for the construction of new factories under the CHIPS program. Instead of the originally planned $8.5 billion, Intel will receive just under $8 billion. The move follows an order from the Pentagon that will bring the company $3.5 billion to make chips for the US defense and intelligence services.
Even so, Intel remains the largest recipient of government support from CHIPS, which aims to boost domestic semiconductor production. The company has previously received pledges of up to $20 billion in a combination of grants and soft loans to support the construction of factories in Arizona, Ohio, New Mexico and Oregon. However, delays to the Ohio project, originally planned for 2025, have raised concerns about future chip demand.
The Commerce Department is therefore actively negotiating with tech giants such as Apple, Google and Microsoft to encourage the purchase of US-made chips. While Microsoft already cooperates with Intel, Apple relies mainly on Taiwan’s TSMC.
Intel still remains a key player in the US chip industry. It is the only domestic company that produces on the most advanced production processes. Its 18A technology, which is due to start production in 2025, is one of the main reasons why the government is investing in Intel.
Source: pctuning.cz
