Intel Gains $7.9 Billion from CHIPS Act Prior to Trump's Term

Intel is set to receive about $7.9 billion in federal funding, announced by the U.S. Department of Commerce, as President Biden's administration finalizes CHIPS Act deals before Donald Trump assumes the presidency.

This amount is over $600 million less than the $8.5 billion initially outlined by President Joe Biden in March, with the discrepancy due to an additional grant of $3 billion Intel received for military chip production, as reported by The New York Times.

A senior official from the administration disclosed to Bloomberg that Intel will obtain a minimum of $1 billion of its total grant by the year's end.

President-elect Trump had previously voiced criticism over the CHIPS Act, advocating for the use of tariffs to encourage semiconductor manufacturing within the United States. This perspective has prompted a rush by the Biden administration to settle payments amounting to billions before the deadline.

Intel plans to utilize CHIPS Act funding to significantly expand its semiconductor manufacturing capabilities domestically. The company forecasts investing close to $90 billion in the United States by the decade's close.

Gina Raimondo, U.S. Secretary of Commerce, remarked in a press statement that Intel's investments in states like Arizona, New Mexico, Ohio, and Oregon are set to bolster U.S. innovation substantially. She noted the pivotal role Intel plays in rejuvenating the American semiconductor sector.

Despite these investments, Intel's share value has plummeted nearly 50% this year.

In September, The Wall Street Journal reported potential interest from Qualcomm in acquiring Intel. However, Bloomberg has indicated that interest has dwindled due to complexities surrounding the acquisition process, according to informed sources.

Intel did not promptly provide a comment to Business Insider regarding these developments, as the request was made outside of traditional business hours.