[The Exiled]

US govt's CHIPS Act gives Intel $8.5 billion in funding and a 25% tax credit on $100 billion in investments

The U.S. Commerce Department announced today that it has come to a preliminary agreement with Intel to provide the chipmaker with $8.5 billion in direct funding for commercial semiconductor manufacturing in the United States, along with $11 billion in loans with a low interest rate and a 25% investment tax credit on up to $100 billion of Intel’s capital investments. The funding comes as the byproduct of the CHIPS Act, which seeks to provide direct funding to revitalize domestic chip production.

The funding will help offset costs for Intel’s chipmaking facilities in Arizona, New Mexico, Ohio, and Oregon. Aside from the direct $8.5 billion in funding, Intel will also be eligible for $11 billion in loans from the Commerce Department. Intel says these are long-term loans at very low interest rates but didn’t elaborate on the specific terms. The loans will help Intel secure funding for the large capital investments required to build leading-edge fabs while also potentially reducing the need for further funding partnerships like the deal it signed with Brookfield earlier this year, which involved granting Brookfield a 49% ownership stake in Intel’s Arizona fab in exchange for $15 billion in funding.

The CHIPS funds will go to new fabs and advanced packaging facilities located across four states. Intel will build two leading-edge fabs in Chandler, Arizona, to build chips on its Intel 18A node. Two fabs will be converted into packaging facilities in Rio Rancho, New Mexico. Intel's New Albany, Ohio, campus will see two planned leading-edge fabs, and Intel's Hillsboro, Oregon campus will see "expansion and modernization," including high N.A. extreme ultraviolet lithography from ASML that Intel recently started installing. Intel expects 25 to 30% of its investments to go to building the manufacturing facilities, with the remaining ~70% spent on the tools it will install in the fabs.

Intel pushes launch date of Ohio fab from 2025 to 2027 or 2028 – state politicians remain enthusiastic about progress

Izvor: Tom's Hardware