Intel cannot receive the first subsidies under the US Chip

Intel cannot receive the first subsidies under the US Chip Act until 2023 at the earliest

Formally, the CHIPS and Science Act approved by the US Congress has yet to be signed by President Joseph Biden, but potential recipients of subsidies to set up chip-making companies in the country are already expressing satisfaction with the passage of the law. Intel says it won’t be able to claim a portion of the $52 billion in government subsidies until next year.

    Image source: Intel

Image source: Intel

Keep in mind that Intel admitted at its most recent quarterly reporting conference that it would cut capital expenditures from $27 billion to $23 billion this year, and some of those savings will come from a delay in purchasing technology equipment for the company new companies. CFO David Zinsner explained that the group budget does not include any government subsidies. According to company management, the existing procedure for distributing public funds will make it possible to receive them in 2023 at the earliest. How much subsidies Intel can claim is still difficult to say. Company representatives will be able to update the information on this matter a little later.

CEO Patrick Gelsinger, who personally campaigned for legislation to subsidize the construction of chip factories in the US, reacted very emotionally to the news that the US Congress had passed the legislative package. In his opinion, this is the most important part of the industrial policy agreed upon by American legislators after World War II. According to Patrick Gelsinger, Intel will clearly benefit from these subsidies. He noted that in Europe the company also manages to find sources of funding for local projects, but Intel won’t limit itself to government subsidies and therefore expects to attract funds from some partners. Their names have not yet been announced.

Remember, Intel has already committed $20 billion to build new businesses in Arizona. A similar amount should be spent on the development of a new cluster in Ohio, which by 2025 will master the production of semiconductor products based on Intel 18A technology not only for its own needs, but also for third-party customers. In the coming years, Intel also expects to spend 33 billion euros to set up new companies and research centers in Europe. Of this, 17 billion euros are to be made available for the development of two large companies for chip production in Germany. In all of these cases, the company wants to cover up to 30% of its capital costs with government grants.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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