The Taiwanese company TSMC was among the first chip manufacturers building plants in the United States to receive guarantees from the country’s authorities for the allocation of $6.6 billion in subsidies that were previously promised. Intel, which was set to receive the largest amount of money from the initiative, may see it reduced, according to people familiar with the matter.
Image Source: Intel
They are cited by The New York Times, which notes that, from the point of view of American officials, Intel does not fully comply with the requirements for recipients of subsidies under the “Chip Act.” First, it delayed construction of two new facilities in Ohio from late 2025 until the second half of the decade. Second, Intel’s efforts to attract large customers to its contract chip manufacturing services have so far remained largely in vain, despite a petition from current US Commerce Secretary Gina Raimondo. Last month, she admitted to The New York Times that she had approached Google, Microsoft, Amazon and Apple to entrust the production of their chips to Intel in the United States.
Accordingly, as the sources note, instead of the $8.5 billion promised in the spring, Intel can now receive less than $8 billion in non-refundable subsidies for the construction of new enterprises in the United States and the modernization and expansion of existing ones. This decision also takes into account Intel’s already allocated $3 billion that will be used to organize the production of advanced chips for defense customers. What will be the fate of preferential loans in the amount of $11 billion, which are also due to Intel, has not yet been specified. In any case, Intel is still the largest potential recipient of US financial assistance under the so-called “CHIP Act”, which President Joseph Biden signed into law at the end of 2022.