During its latest earnings call on Thursday, Intel, the semiconductor giant, revealed that it has received US$2.2 billion in federal grants from the U.S. Department of Commerce as part of the CHIPS and Science Act.
Dave Zinsner, Intelโs co-interim CEO, executive vice president, and CFO, stated that the company received an initial US$1.1 billion at the end of 2024, followed by another US$1.1 billion in January 2025. These grants are tied to specific production milestones, with an additional US$5.66 billion yet to be distributed.
Intelโs investment in U.S. chip manufacturing
In November 2024, Intel was awarded a total of US$7.86 billion under the CHIPS Act to boost semiconductor manufacturing in the U.S. While significant, this amount was slightly lower than the initial estimate of US$8.5 billion. The company plans to use these funds for advanced manufacturing and packaging techniques, enabling the integration of multiple semiconductor chips into a single unit. These initiatives will occur at Intelโs Arizona, New Mexico, Ohio, and Oregon facilities.
The CHIPS and Science Act, signed into law by former President Joe Biden in 2022, aims to strengthen domestic semiconductor manufacturing. The Act allocated US$52 billion in subsidies to support U.S.-based chip production, reducing reliance on foreign suppliers and boosting technological leadership.
Potential impact of policy changes
Despite the progress, the CHIPS Act faces uncertainty under the Trump administration. According to Bloomberg, a proposed federal funding freeze, currently blocked by a federal judge, could impact Commerce Department employees working on the initiative.
However, Zinsner remains optimistic. He noted that Intel has already engaged with the Trump administration and is confident in its commitment to strengthening domestic semiconductor production.
โWe look forward to continued engagement with the Trump administration as we advance this work and support their efforts to strengthen U.S. technology and manufacturing leadership,โ Zinsner said during the earnings call.
