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Intel is set to receive a total Chips Act incentive package of more than US$10 billion that includes both grants and loans.
THE United States government is poised to invest US$3.5 billion in Intel so the chipmaker can produce advanced semiconductors for military and intelligence programmes, according to congressional aides.
The money, tucked into a fast-moving spending bill the House passed on Wednesday (Mar 6), would establish Intel as a dominant domestic player in the lucrative defence market.
The funding, which would run over three years, is for the “secure enclave” programme. It comes from a broader US$39 billion Chips and Science Act grant pool that’s designed to convince chipmakers to produce semiconductors in the US. More than 600 companies have expressed interest in the funding.
The Wall Street Journal reported in November that Intel was in talks for between US$3 billion and US$4 billion in government subsidies from the programme.
Intel is set to receive a total Chips Act incentive package of more than US$10 billion that includes both grants and loans, Bloomberg has reported. The company declined to comment on the pending US$3.5 billion investment.
“We are still reviewing the effect of the appropriations text on the programme,” the Commerce Department said. “The department looks forward to continuing to work with Congress on implementing the Chips and Science Act in a manner the promotes our economic and national security.”
THE United States government is poised to invest US$3.5 billion in Intel so the chipmaker can produce advanced semiconductors for military and intelligence programmes, according to congressional aides. Read more at The Business Times.
I mentioned this in my foundry note to clients. Intel being "US Fab" is a market that really only Intel can fill. the question is how big this market will be.,,,, we show this in our revenue projections for Intel Foundry
I mentioned this in my foundry note to clients. Intel being "US Fab" is a market that really only Intel can fill. the question is how big this market will be.,,,, we show this in our revenue projections for Intel Foundry
Globalfoundries has quite a bit of military and defense business left over from the IBM Semiconductor group they purchased. Part of the money they got from the Chips Act will go to that as well. So technically speaking GF is a US fab but politically speaking they are majority owned by a foreign government.
In my opinion Intel will be taking money from both Samsung Foundry and GF moving forward.
So if you remove a USM prepay intel is getting 6B for building 5 bleeding edge 18A and beyond fabs and expanding advanced packaging capacity in the US. Meanwhile GF got 2.1B to build an SOI/bipolar fab in NY and buy some new 8in GaN tools at Vermont so the fab won’t fall apart.
If the CHIPs act was at least honest that they don’t care about leading edge, and say it is all about on-shoring essential chips and military hardware I would get it. But frequently they talk like getting the leading edge stuff is the main part of it.
Also it is wild to me that there have been no rumors of Micron getting anything. If no rumors equate to the USG not taking micron seriously (which mind you isn’t necessarily true). That would just be bewildering. Not taking US DRAM share above 0% would be the greatest potential missed opportunity of them all.
Globalfoundries has quite a bit of military and defense business left over from the IBM Semiconductor group they purchased. Part of the money they got from the Chips Act will go to that as well. So technically speaking GF is a US fab but politically speaking they are majority owned by a foreign government.
In my opinion Intel will be taking money from both Samsung Foundry and GF moving forward.
Correct.... the difference is leading edge. GF does not have leading edge technology (14nm is not leading edge, 12nm is not leading edge IMO). the political spin is that 3nm and below is needed by the government.
I have seen some of the rumors, I would wait to see the details and actual distribution details by year. Micron is coming but they have a problem in that more capacity is not needed and they have cash flow problems currently so we might see the slowest Fab build in history in Boise.
So does Apple, Nvidia, AMD, Qualcomm, Broadcom business and supply security matter?
How much of that should be in a foreign company making 26+billion and huge operating margins? Also that company is explicit leading edge stays at home but a 29’ bomb run from economic Armageddon ?
www.businesstimes.com.sg