The US government is considering paying more than $10 billion to Intel under the Domestic Manufacturers Protection Act. This amount will be the largest support package granted to the American chip maker so far.
According to BloombergThe financial package of the blue team is paid to this company in the form of direct loans and facilities; However, determining the exact share of each of these two is still in the negotiation stage.
Under the CHIPS and Science Act, passed in 2022, $39 billion in direct grants and $75 billion in loans will be allocated to top semiconductor companies to develop their product lines and technologies in America.
Neither Intel nor the US Department of Commerce have yet officially approved the $10 billion package. However, Intel has long been a candidate for financial support from the US government.
Intel is building its most advanced factory in the state of Ohio, which is expected to require more than 100 billion dollars of capital to complete, of which about 20 billion dollars will be invested in the first phase.
In addition, Intel plans to spend 20 billion dollars on the expansion of its center in the state of Arizona and 3.5 billion dollars on its factory in New Mexico, and it needs the support of the government to do it.
TSMC, maker of iPhone and MacBook laptop processors, will also build a factory in Arizona to make some of its advanced chips. The company starts with 4 and 5 nm technologies and then produces 3 nm chips. This project is also completely dependent on the support of the government.
Other companies, including Global Foundries, Micron, Samsung and Texas Instruments, are also expanding their presence in the US by receiving the expected support from the government.
The Commerce Department has already paid smaller aid packages to other companies, and larger ones are expected in the coming months.
The US government’s financial support for the development of the chip industry can affect the price of CPU and even reduce the price of Intel processors in the coming years.
