Biden administration finalizes nearly $8B in CHIPS funding for Intel

Intel will receive about $7.86 billion in funding from the CHIPS and Science Act to build new semiconductor manufacturing facilities across four states under its finalized agreement with the Biden administration.

The final award is over $600 million less than the $8.5 billion initially announced in March, after the chipmaker received a separate $3 billion contract with the government in September.

“The CHIPS for America program will supercharge American innovation and technology and make our country more secure — and Intel is playing an important role in the revitalization of the U.S. semiconductor industry through its unprecedented investments across Arizona, New Mexico, Ohio, and Oregon,” Commerce Secretary Gina Raimondo said in a statement.

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The funding is meant to support the construction of four new fabrication sites in Arizona and Ohio. It will also be used to modernize existing facilities in Arizona, New Mexico and Oregon.

Intel is reportedly set to receive at least $1 billion in funding later this year, according to The Wall Street Journal.

The White House is pushing to allocate the remaining funds from the $52 billion semiconductor stimulus package with less than two months until President-elect Trump takes office.

Trump has previously taken aim at the CHIPS funding, arguing that the administration should have instead levied tariffs on chips to encourage semiconductor manufacturing within the U.S.

“That chip deal is so bad,” the president-elect said on “The Joe Rogan Experience” last month. “We put up billions of dollars for rich companies to come in and borrow the money and build chip companies here.”

“All you had to do is charge them tariffs,” he said at the time. “When I see us paying a lot of money to have people build chips, that's not the way. You didn't have to put up 10 cents.”