Intel Receives $2.2 Billion in CHIPS Act Grants, More Funding on the Way

Semiconductor giant Intel has secured $2.2 billion in federal grants from the U.S. Department of Commerce under the U.S. CHIPS and Science Act, as shared during the company’s Thursday earnings call.

Dave Zinsner, Intel’s co-interim CEO, executive vice president, and CFO, revealed that the company received $1.1 billion in grant funding at the end of 2024, with an additional $1.1 billion arriving in January 2025. These payments are tied to specific milestones set by the program. Another $5.66 billion in grants is still pending distribution.

In November, Intel was awarded a total of $7.86 billion in federal funding to boost semiconductor manufacturing in the U.S. through the CHIPS and Science Act. While substantial, this final amount came in shy of the original $8.5 billion estimate. The company plans to use these funds for manufacturing and advanced packaging, including assembling and integrating multiple semiconductor chips into single packages. This work will be carried out at Intel facilities in Arizona, New Mexico, Ohio, and Oregon.

The U.S. CHIPS and Science Act, signed into law by President Joe Biden in 2022, aims to bolster domestic semiconductor production. The act allocates $52 billion in subsidies for U.S.-based chip manufacturers. However, its future faces some uncertainty under the Trump Administration. If former President Donald Trump’s proposed federal funding freeze—currently blocked by a federal judge—takes effect, it could impact Commerce Department employees supporting the CHIPS Act, according to Bloomberg.

Despite this uncertainty, Zinsner shared an optimistic outlook. He mentioned that Intel has been in communication with the Trump Administration and feels positive about their shared goals for strengthening U.S. semiconductor manufacturing.

“We look forward to continued engagement with the Trump Administration as we advance this work and support their efforts to strengthen U.S. technology and manufacturing leadership,” Zinsner said during the call.