US Government to Announce Massive Grant for Intel's Arizona Facility

[AleksandarK]

According to the latest report by Reuters, the US government is preparing to announce a multi-billion dollar grant for Intel's chip manufacturing operations in Arizona next week, possibly worth more than $10 billion. US President Joe Biden and Commerce Secretary Gina Raimondo will make the announcement, which is part of the 2022 CHIPS and Science Act aimed at expanding US chip production and reducing dependence on China and Taiwan manufacturing. The exact amount of the grant has yet to be confirmed, but rumors suggest it could exceed $10 billion, making it the most significant award yet under the CHIPS Act. The funding will include grants and loans to bolster Intel's competitive position and support the company's US semiconductor manufacturing expansion plans. This comes as a surprise just a day after the Pentagon reportedly refused to invest $2.5 billion in Intel as a part of a secret defense grant.

Intel has been investing significantly in its US expansion, recently opening a $3.5 billion advanced packaging facility in New Mexico, supposed to create extravagant packaging technology like Foveros and EMIB. The chipmaker is also expanding its semiconductor manufacturing capacity in Arizona, with plans to build new fabs in the state. Arizona is quickly becoming a significant hub for semiconductor manufacturing in the United States. In addition to Intel's expansion, Taiwan Semiconductor Manufacturing Company (TSMC) is also building new fabs in the state, attracting supply partners to the region. CHIPS Act has a total funding capacity of $39 billion allocated for semiconductor production and $11 billion for research and development. The Intel grant will likely cover the production part, as Team Blue has been reshaping its business units with the Intel Product and Intel Foundry segments.



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[AnarchoPrimitiv]

I can't express how much this truly bothers me....

 

[A&P211]

I can't express how much this truly bothers me....

I want a 2billion grant

 

[damric]

Keep printing money to subsidize these cronies. Socialism for the rich, capitalism for the poor.

 

[ZeppMan217]

Once again, socializing the losses while privatizing the profits.

 

[Daven]

More concentration of wealth with the wealthy. Luckily its a terminal trend.

 

[maxfly]

Iirc Samsung is in play for 6-8b in the near future as well. Too lazy/busy to look for the story right now.

 

[ZoneDymo]

Make the rich richer by giving them the money of the people, good stuff

 

[Dr_b_]

Now Americans are forced to buy Intel CPUs whether they like it or not. This is a bailout for years of bad decision making, malfeasance, and inept management, not an investment to counter foreign government subsidies in their own tech industries.

 

[mb194dc]

Whilst it makes sense to have domestic semi production... It's also going to distort the market, high possibility of over supply from all these government funded fabs, and that they then won't be able to produce chips profitably.

 

[phanbuey]

Whilst it makes sense to have domestic semi production... It's also going to distort the market, high possibility of over supply from all these government funded fabs, and that they then won't be able to produce chips profitably.

The only other option, which we have tried in the 90s and 2000s -- which led to the death of American Semiconductor mfg, is to fall behind Taiwan/China who were heavily subsidizing chips/EVs/etc. the whole time - and doing the exact same thing... So it's a choice between a distorted local market, or total dependence on a distorted foreign market.

 

[A&P211]

Cash on Hand as of December 2023 : $25.03 B

They have 25billion in cash.

 

[phanbuey]

Cash on Hand as of December 2023 : $25.03 B

They have 25billion in cash.

They committed 30BN in europe, 25 billion in Israel, 25 billion in Ohio, and 50 billion into Arizona... 25BN in cash in an organization that size is 6 months of revenues...

TSMC is getting 5 billion from the US, and they're also getting funding from Taiwan, and have 44BN in cash on hand...

 

[andrehide]

Should be barely enough to buy coolers for the 14900KS.

 

[FoulOnWhite]

Would the sentiment be the same if they were giving AMD 10 billion dollars i wonder.

 

[Event Horizon]

Local manufacturing is definitely needed. Whether it should be Intel or someone else is up for debate.

 

[tfp]

Would the sentiment be the same if they were giving AMD 10 billion dollars i wonder.

No it would not, "We should be helping the under dog..."

 

[AnarchoPrimitiv]

Would the sentiment be the same if they were giving AMD 10 billion dollars i wonder.

No, it wouldn't, because in a duopoly, the smaller party gaining marketshare HELPS consumers by bringing competition closer to parity.....so no, because giving 10 billion to AMD would OBJECTIVELY benefit consumers. And the fact that x86 production IS a duopoly makes this government handout to Intel all the more egregious.

 

[FoulOnWhite]

Well imo that is just as unfair as giving intel the 10 billion. AMD are in the position they are in because of the choices they made, same as intel are. It's ok to jeer at intel when they make mistakes but not AMD because they are not doing so well.

 

[Space Lynx]

Keep printing money to subsidize these cronies. Socialism for the rich, capitalism for the poor.

don't worry there isn't enough money for social security and they will have to make cuts! its ok boop boop on your cute little hat, oh we also haven't paid our 15 trillion dollars in wars we took loans for, oh and 7 trillion we spent on Covid too, boop boop look at that cute hat don't worry everything will be ok senpai boop boop

 

[Dave65]

Keep printing money to subsidize these cronies. Socialism for the rich, capitalism for the poor.

THIS

 

[the54thvoid]

Keep printing money to subsidize these cronies. Socialism for the rich, capitalism for the poor.

It's capitalism for the rich, capitalism for the poor. If it was socialism, the government would simply own Intel. In this case, Intel (and all the lobbying arseholes with billions) own ANY government. I'm amazed how folk get this so wrong. In true socialism, there is no private wealth, it's all shared. And it doesn't work-- you know, because people are people. Stop making politics out of western, free business ideals. If you don't want Intel to have so much clout, ironically, you need a socialist mandate. Which never works. This is what you get when you say no. Wealth is power. Suck it up.

 

[kondamin]

Would the sentiment be the same if they were giving AMD 10 billion dollars i wonder.

They are a paper company, they have TSMC make their stuff, TSMC also received 5Billion.

If AMD wanted to receive money like that they should buy Global foundries

 

[Dave65]

This is bullshit, Intel needs grants like I need to get fatter.

 

[Noyand]

No, it wouldn't, because in a duopoly, the smaller party gaining marketshare HELPS consumers by bringing competition closer to parity.....so no, because giving 10 billion to AMD would OBJECTIVELY benefit consumers. And the fact that x86 production IS a duopoly makes this government handout to Intel all the more egregious.

Giving 10 billion to AMD would do nothing to increase bleeding edge node manufacturing. Maybe Global foundry, but I guess that with them suddenly giving up on 7nm and bleeding edge as a strategic move (even thought they were supposed to fab IBM chips) they don't inspire confidence.