Intel will receive up to $8.5 billion in funding, $11 billion in loans from the CHIPS Act

[midian182]

What just happened? Intel is set to become one of the biggest beneficiaries of the CHIPS Act after the White House said it had reached preliminary terms with Team Blue to provide it up to $8.5 billion in direct funding. Intel will also receive up to $11 billion in low-interest loans and a 25% investment tax credit on up to $100 billion of capital investments.

The CHIPS Act is designed to boost semiconductor manufacturing in the US and improve innovation in the country, especially with the threat of a Chinese invasion constantly hanging over Taiwan, home of TSMC.

According to a White House statement, the $8.5 billion in direct funding will be used to support Intel's capacity and capability expansion in Arizona, New Mexico, Ohio, and Oregon. The projects are estimated to create over 10,000 manufacturing jobs and nearly 20,000 construction jobs.

In addition to the $8.5 billion in direct funding, $11 billion in long-term, low-interest loans is being offered to Intel, part of the $75 billion in loan authority provided by the CHIPS and Science Act. The money will be used to further expand Intel's production capabilities and help build new fabs.

Intel says it will invest $100 billion in chip manufacturing over the next five years. The company is able to claim an Investment Tax Credit from the Department of the Treasury that would allow it to write off 25% of that $100 billion investment.

The $8.5 billion in direct funding will be distributed in portions and should start to arrive later this year. It is subject to Intel reaching certain "milestones," wrote the White House. President Biden will announce the deal at Intel's Ocotillo campus in Chandler, Arizona, during a ceremony today.

The CHIPS money will go toward the construction of two new leading-edge logic fabs for Intel's 18A node and the modernization of one existing fab in Chandler, Arizona. Two fabs in Rio Rancho, New Mexico, will be converted into advanced packaging facilities. Two leading-edge logic fabs will be constructed at Intel's New Albany, Ohio, campus, and technology development facilities at Hillsboro, Oregon, will be expanded and modernized.

The CHIPS Act provides $52 billion in subsidies for domestic semiconductor production. US Commerce Secretary Gina Raimondo said the money will help the United States meet its goal of ensuring that 20% of the world's most advanced chips are produced in the US by the end of the decade. Raimondo said that figure stood at 0% today.

The White House announcement marks the largest CHIPS Act funding to date. Intel CEO Pat Gelsinger said the amount was "about" what the company expected to receive.

Permalink to story.

https://www.techspot.com/news/102329-intel-receive-up-85-billion-funding-11-billion.html

 

[wiyosaya]

Hopefully, this will create high-paying US jobs instead of low-paying jobs in the service industry that no one but migrants want. It will, also hopefully, help bring high-tech manufacturing back to the US.

However, I can see the comments about "corporate welfare" from a vast distance.

 

[maxxcool7421]

Complete scam and waste of money

we live in a world where China controls about 90% of all CPU GRADE silicon production, not only as a purer source straight out of the ground, but also on a cost/tonne in refinement and production. If china embargos that refined silicon most all silicon based production on earth ends in 60 days.

Google > mining-and-refining-pure-silicon-and-the-incredible-effort-it-takes-to-get-there

Google > silicon production by country statista

lastly Russia and the Ukrain produce most all of the Neon used in wafer processing .. if THEY stop exports again, we lose world wide production until someone else can produce the 80% of the world neon supply

Google > low-on-gas-ukraine-invasion-chokes-supply-of-neon-needed-for-chipmaking

If they team up. game over. No US based production of cpu/gpu will occur as domestic production is impossibly short on production and the current production in other countries cannot even supply JUST the US, let alone the entire market needs.

 

[whateversa]

Next article about this will be: over supply of chips, too many fabs world wide, US labour too expensive...

 

[Lounds]

All those years when intel was profiting massively they just wasted it and now the US tax payer foots the bill for their investments.

 

[Superconductor]

Corporate welfare

 

[wiyosaya]

All those years when intel was profiting massively they just wasted it and now the US tax payer foots the bill for their investments.

That's Intel to a T.

 

[wiyosaya]

Corporate welfare

Maybe the US should be named, or nick-named, "The Land of Corporate Welfare."

 

[wiyosaya]

Complete scam and waste of money

we live in a world where China controls about 90% of all CPU GRADE silicon production, not only as a purer source straight out of the ground, but also on a cost/tonne in refinement and production. If china embargos that refined silicon most all silicon based production on earth ends in 60 days.

Google > mining-and-refining-pure-silicon-and-the-incredible-effort-it-takes-to-get-there

Google > silicon production by country statista

lastly Russia and the Ukrain produce most all of the Neon used in wafer processing .. if THEY stop exports again, we lose world wide production until someone else can produce the 80% of the world neon supply

Google > low-on-gas-ukraine-invasion-chokes-supply-of-neon-needed-for-chipmaking

If they team up. game over. No US based production of cpu/gpu will occur as domestic production is impossibly short on production and the current production in other countries cannot even supply JUST the US, let alone the entire market needs.

I assume that you know why Neon is needed. Consider, however, that alternatives to the lasers that require that gas as part of the process already exist, and that laser technology, in general, is constantly advancing. For example there is this - https://www.laserfocusworld.com/las...shortest-diode-lasers-in-the-deep-ultraviolet and I did not even make you search for it. Note that as the node size shrinks, lasers with wavelengths below 193nm will be required. As I understand it, the 193nm wavelength of eximer lasers is fixed.

To your other arguments, they may be valid at present, however, I would not doubt that there is significant research being done on other sources, or other sources are in development.

The argument of "it will never work" fails to consider the ingenuity of humanity, at least as I see it. "Never" is a very long time, and I am sure that pundits have said "Never" about various things throughout the history of humanity only to be proven incorrect in their views.

 

[ZackL04]

What a massive waste of tax dollars.

Pat yourself on the back for;
- Trying to help a chip shortage far too late
- Giving money far to late to even create infrastructure to produce chips to combat a shortage
- Giving money to a giant company that will do nothing with it but line their pockets and build a useless US based plant years from now that will only lose them money or force them to increase prices…

 

[Manoa]

you right about this wiyosaya, but it might not be as cheep or as easy to do

 

[Neatfeatguy]

"President Biden will announce the deal at Intel's Ocotillo campus in Chandler, Arizona, during a ceremony today."

Biden (probably): I'd like...uh...to um...thank the California Highway Patrol for all their hard work here. Especially to that um, young officer fella uponcheralemelmolo. Uh, Poncherello and his partner Officer Baker. (whispering) CHiPS, love watching that show as I eat my chocolate-chip ice cream.

 

[wiyosaya]

you right about this wiyosaya, but it might not be as cheep or as easy to do

Consider that diode lasers are far cheaper and far easier to build than gas lasers.

Progress takes time, and it is to the strategic advantage of the US to do what it takes to get a semiconductor industry established on its own soil whatever the cost, IMO.

For far too long, IMO, the US and its businesses have been farming out production of just about everything in the name of profits without paying attention to the side-effects that happened. Those side-effects were and are, IMO, detrimental to the US.

"President Biden will announce the deal at Intel's Ocotillo campus in Chandler, Arizona, during a ceremony today."

Biden (probably): I'd like...uh...to um...thank the California Highway Patrol for all their hard work here. Especially to that um, young officer fella uponcheralemelmolo. Uh, Poncherello and his partner Officer Baker. (whispering) CHiPS, love watching that show as I eat my chocolate-chip ice cream.

Well, since you could not resist bringing politics into the conversation, Trump has already said that he would slap 100% tariffs on EVs for which he claims "no one will want to buy them." Which, no doubt, means that he would, IF elected, go back to his slap tariffs on anything and everything from China "policy". The problem with that was US citizens were the ones paying those tariffs. Did that stop US citizens buying Chinese products with Tariffs on them? I think that the answer to that question is NO. I guess making things more expensive for US citizens is Trump's way of "Making America Great Again" at the expense of US citizens.

IMO, Biden's policies toward China have been far more effective and far less damning to US citizens.

Biden's policies are hitting China where it hurts the most - the Chinese Economy.

 

[Disiw]

Complete scam and waste of money

we live in a world where China controls about 90% of all CPU GRADE silicon production, not only as a purer source straight out of the ground, but also on a cost/tonne in refinement and production. If china embargos that refined silicon most all silicon based production on earth ends in 60 days.

Google > mining-and-refining-pure-silicon-and-the-incredible-effort-it-takes-to-get-there

Google > silicon production by country statista

lastly Russia and the Ukrain produce most all of the Neon used in wafer processing .. if THEY stop exports again, we lose world wide production until someone else can produce the 80% of the world neon supply

Google > low-on-gas-ukraine-invasion-chokes-supply-of-neon-needed-for-chipmaking

If they team up. game over. No US based production of cpu/gpu will occur as domestic production is impossibly short on production and the current production in other countries cannot even supply JUST the US, let alone the entire market needs.

https://www.gartner.com/en/newsroom/press-releases/2024-01-16-gartner-says-worldwide-semiconductor-revenue-declined-11-percent-in-2023

Intel is the biggest chip company.

 

[Endymio]

Well, since you could not resist bringing politics into the conversation, Trump has already said that he would slap 100% tariffs on EVs

Only on those produced by China, and heavily subsidized by the CCP.

The problem with [Chinese tariffs] was US citizens were the ones paying those tariffs.

That's how tariffs work. In this case, they were a $32B tax on people who purchased Chinese goods. You scream over that, but applauded Joe Biden's $1.7T infrastructure bill, which taxed US citizens 50 times as much, with far less to show for it.

Did that stop US citizens buying Chinese products with Tariffs on them? I think that the answer to that question is NO.

It certainly reduced the amount of Chinese goods US citizens bought, which is why the US saw the first ever reduction in the US-China trade deficit during that period. And, had those tariffs been able to act over a longer period, there would have been time for US manufacturing to step in to fill the gap. But with Biden's pro-Chinese polices in force, what US company would risk capital in such a venture?