The U.S. Commerce Department said Tuesday it was finalizing a $7.86 billion government subsidy for Intel , down from $8.5 billion announced in March after the California-based chips maker won a separate $3 billion award from the Pentagon. <\/p>\n
The award will support nearly $90 billion in manufacturing projects in Arizona, New Mexico, Ohio, and Oregon. <\/p>\n
“That means American-designed chips being manufactured and packaged by American workers in the United States by an American company for the first time in a very long time,” Commerce Secretary Gina Raimondo said. <\/p>\n
Intel has already met some initial project milestones and will receive at least $1 billion of the award before the end of December, a government official told reporters, adding that the grant reduction was not connected to Intel’s broader struggles this year. <\/p>\n
Margins have narrowed and the chipmaker has laid off thousands of employees, after years of heavy spending at the once-dominant chipmaker by Chief Executive Pat Gelsinger. <\/p>\n
The $7.86 billion subsidy is the largest of any award under a 2022 law that seeks to boost domestic semiconductor output with $52.7 billion in funding, including $39 billion for semiconductor production and $11 billion for research. <\/p>\n
Intel in September won a $3 billion contract with the Defense Department, after the initial $8.5 billion in grants had been announced. <\/p>\n
Funding for the Pentagon contract ended up coming from the $39 billion that U.S. lawmakers allocated for chip manufacturing subsidies rather than the Pentagon’s budget, which led to a reduction in Intel’s direct grant award, the company and the government official said. <\/p>\n
Gelsinger said Tuesday “strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security.” <\/p>\n
Intel opted not to finalize a separate $11 billion low-cost government loan that had been offered in March. <\/p>\n
The company said Tuesday the loan terms “were less favorable than anticipated for Intel’s shareholders and did not align with Intel’s long-term growth and market interests.” It said it looks forward to engaging with the incoming administration about utilizing loan provisions in the future. <\/p>\n
Intel said it also plans to claim the Treasury Investment Tax Credit, which is expected to be up to 25% of qualified investments of more than $100 billion. <\/p>\n
Raimondo noted the Intel award was the sixth to be finalized and that more would be completed in the coming weeks. She added that awards were being finalized “in a way that protects and safeguards taxpayer dollars.” <\/p>\n
The Commerce award includes restrictions on stock buy backs for five years and provisions for sharing of “meaningful” excess profits.<\/p>\n","protected":false},"excerpt":{"rendered":"
The U.S. Commerce Department said Tuesday it was finalizing a $7.86 billion government subsidy for Intel , down from $8.5 billion announced in March after the California-based chips maker won a separate $3 billion award from the Pentagon. The award will support nearly $90 billion in manufacturing projects in Arizona, New Mexico, Ohio, and Oregon. “That means American-designed chips being manufactured and packaged by American workers in the United States by an American company for the first time in a very long time,” Commerce Secretary Gina Raimondo said. Intel has already met some initial project milestones and will receive at […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-881003","post","type-post","status-publish","format-standard","hentry","category-it-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/881003","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=881003"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/881003\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=881003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=881003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=881003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}