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Intel Secures $8.5 Billion in Chips Act Funding, Sending Its Stock Soaring

March 20, 2024
minute read

Intel Corporation stands poised to receive substantial federal funding through the Chips Act, with its stock experiencing a surge in premarket trading on Wednesday.

The Department of Commerce has forged a preliminary agreement with Intel (INTC), offering the company up to $8.5 billion in direct funding and $11 billion in loans under the Chips Act. These funds are designated to bolster the construction and expansion of facilities in Arizona, Ohio, New Mexico, and Oregon, as outlined in a statement from the White House.

President Joe Biden is scheduled to visit an Intel campus in Arizona on Wednesday to announce the agreement. The White House asserts that Intel's initiatives will pave the way for the creation of approximately 30,000 jobs, along with supporting tens of thousands of indirect employment opportunities.

In response to this development, Intel's stock has surged by more than 3% in premarket trading.

With chips playing an increasingly pivotal role in powering various facets of society, there has been a growing recognition of the geopolitical dynamics surrounding them. While the semiconductor supply chain spans the globe, the Biden administration has been advocating for the expansion of U.S.-based chip manufacturing.

The White House underscored the significance of this announcement in realizing President Biden's vision to reestablish America's leadership in chip manufacturing.

Distinguishing itself from many of its competitors, Intel not only sells chips but also manufactures them. The company is currently in the process of launching its foundry business, aiming to produce chips for other companies.

This preliminary agreement between the White House and Intel marks the fourth such pact under the Chips Act and is notably the largest. Previously, the government had announced agreements with GlobalFoundries Inc., Microchip Technology Inc., and BAE Systems Electronic Systems.

Cathy Hills
Associate Editor
Eric Ng
John Liu
Editorial Board
Bryan Curtis
Adan Harris
Managing Editor
Cathy Hills
Associate Editor

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