A couple of weeks back, two smaller Chips Act grants were already sanctioned by the commerce department
Some industry insiders in the US have now told the media that the government spearheaded by Joe Biden is planning to offer more than $10 billion subsidy to Intel. Bloomberg has reported that the discussions are still going on and the subsidies will be furnished with both direct grants and loans.
When media approached both Intel and the US Department of Commerce, the spokesperson denied to comment on such things as of now. A couple of weeks back, two smaller Chips Act grants were already sanctioned by the commerce department and the secretary Gina Raimonodo has stated that very soon the department is going to unleash various funding awards in a timeline of two months from the government’s $52 billion incentive scheme to boost the semiconductor industry.
The purpose of the CHIPS Act is to provide subsidies to the semiconductor companies for chip manufacturing and the related supply chain investments and moreover, it will assist in setting-up industries and escalate chip production. Intel on the other hand is planning to invest more than ten billion dollars to set-up chip factories in Arizona and in New Mexico and a new unit in Ohio, which is expected to become the globe’s biggest chip factory.
During the first half of this month, the Wall Street Journal reported that Intel is very likely to delay the construction of the Ohio chip plant until 2026 due to a very slow rollout of federal cash and a slump in the global chip market. The matter is still uncertain whether the wave of federal dollars could speed up the pending works. For instance, TSMC, which also applied for the US incentives, the construction of the new chip factory in Arizona is delayed. Samsung and Micron also applied for the funding to set-up new factories in the US.
