Biden Admin Is Giving Intel $11 Billion to Make Chips

Corporate handouts are patriotic now

Published: November 26, 2024, 5:09 pm

    The U.S. Commerce Department said Tuesday it was finalizing a $7.86 billion government subsidy for Intel (INTC.O), down from $8.5 billion announced in March after the California-based chips maker won a separate $3 billion award from the Pentagon.

    The award will support nearly $90 billion in manufacturing projects in Arizona, New Mexico, Ohio, and Oregon.

    “That means American-designed chips being manufactured and packaged by American workers in the United States by an American company for the first time in a very long time,” Commerce Secretary Gina Raimondo said.

    Intel has already met some initial project milestones and will receive at least $1 billion of the award before the end of December, a government official told reporters, adding that the grant reduction was not connected to Intel’s broader struggles this year.

    Margins have narrowed and the chipmaker has laid off thousands of employees, after years of heavy spending at the once-dominant chipmaker by Chief Executive Pat Gelsinger.

    The $7.86 billion subsidy is the largest of any award under a 2022 law that seeks to boost domestic semiconductor output with $52.7 billion in funding, including $39 billion for semiconductor production and $11 billion for research.

    Intel in September won a $3 billion contract with the Defense Department, after the initial $8.5 billion in grants had been announced. Funding for the Pentagon contract ended up coming from the $39 billion that U.S. lawmakers allocated for chip manufacturing subsidies rather than the Pentagon’s budget, which led to a reduction in Intel’s direct grant award, the company and the government official said.

    Gelsinger said Tuesday “strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security.”

    Intel opted not to finalize a separate $11 billion low-cost government loan that had been offered in March.

    Intel said it also plans to claim the Treasury Investment Tax Credit, which is expected to be up to 25% of qualified investments of more than $100 billion.

    Raimondo noted the Intel award was the sixth to be finalized and that more would be completed in the coming weeks. She added that awards were being finalized “in a way that protects and safeguards taxpayer dollars.”

    The Commerce award includes restrictions on stock buy backs for five years and provisions for sharing of “meaningful” excess profits.

    Source: Reuters

    David Shepardson

    marko@freewestmedia.com

    Consider donating to support our work

    Help us to produce more articles like this. FreeWestMedia is depending on donations from our readers to keep going. With your help, we expose the mainstream fake news agenda.

    Keep ​your language polite​. Readers from many different countries visit and contribute to Free West Media and we must therefore obey the rules in​,​ for example​, ​Germany. Illegal content will be deleted.

    If you have been approved to post comments without preview from FWM, you are responsible for violation​s​ of​ any​ law. This means that FWM may be forced to cooperate with authorities in a possible crime investigation.

    If your comments are subject to preview ​by FWM, please be patient. We continually review comments but depending on the time of day it can take up to several hours before your comment is reviewed.

    We reserve the right to del​ete​ comments that are offensive, contain slander or foul language, or are irrelevant to the discussion.

    No comments.

    By submitting a comment you grant Free West Media a perpetual license to reproduce your words and name/web site in attribution. Inappropriate and irrelevant comments will be removed at an admin’s discretion. Your email is used for verification purposes only, it will never be shared.

    BRICS Fans, Why Are BRICS Backing the Pandemic Agreement??

    The narrative on BRICS and what they actually support do not align

    The Times of Israel: US Helped Lull Iran Into Belief No Attack Imminent

    The US was in on it, part of the deception operation

    Uh-Oh: Just 37% of Likely Voters Want Senate to OK ‘Big, Beautiful Bill’

    43% oppose and 58% agree with Musk it is an "abomination"

    Deliberate Starvation Is the Corner Stone of Israel’s Campaign to Destroy Life in Gaza

    The West must immediately suspend all arms sales, military aid, impose sanctions, and support international investigations

    Japan Buys Russian Crude From “Shadow Fleet” at Ministry Request After Two Years

    Japan part-owns the production but hasn't been buying until sanctions disrupted China sales

    Netanyahu Asks US to Broker Talks With the Jolani Regime

    Israel also wants US troops and a "demilitarized" southern Syria

    Trump Has Unleashed a Mass Techno-Surveillance State — For Now Against Migrants

    Illegals fodder for the Big Tech—Big Government partnership today, who tomorrow?

    Tulsi Gabbard Warns of “Political Elite Warmongers” Fomenting Nuclear War in Ominous Social Media Video

    They have shelters and you don't warns Director of National Intelligence

    Operation Spiderweb: A Great Success of No Consequence to the War

    Russia has too many airframes and too few missiles for any of this to matter

    Concern Over Mass Migration Is Terrorist Ideology, Says UK Government

    Prevent is a "government-led, multi-agency programme aimed to stop individuals becoming terrorists"

    Go to archive