Mar 20, 2024 - Economy

Intel gets $8.5 billion CHIPS Act grant

President Biden and Intel CEO Pat Gelsinger walk in front of heacy machinery at a groundbreaking ceremony.

President Biden and Intel CEO Pat Gelsinger arrive at a groundbreaking for a semiconductor manufacturing facility near New Albany, Ohio, in 2022. Photo: Gaelen Morse/Bloomberg via Getty Images

Intel was awarded $20 billion in federal grants and loans today to expand its semiconductor production, Axios' Hans Nichols writes.

Why it matters: It's the biggest award in the $52 billion Chips and Science Act President Biden signed into law in 2022.

By the numbers: In addition to the $8.5 billion in grants, Intel is eligible for up to $11 billion in loans from the Commerce Department.

  • Those awards, along with a separate tax credit from the Treasury Department, will lead to an estimated $100 billion in private investment from Intel.
  • The administration expects Intel will use the money to help build or expand facilities in Arizona, Ohio, New Mexico and Oregon and help add a total of 30,000 new jobs.

This story was an excerpt from Axios Closer, a recap on the day's biggest business stories.

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