The US government is considering providing $10 billion in subsidies to Intel to ensure semiconductor production on American soil.
A report from Bloomberg notes that currently, the majority of semiconductors used in the US for military and civilian applications are manufactured in areas of East Asia prone to Chinese sabotage and espionage, such as Taiwan.
The CHIPS Act has set aside $53 billion to secure domestic semiconductor manufacturing, with companies like Micron, Samsung and the Taiwan Semiconductor Manufacturing Company in the crosshairs for funding.
There are subsidized chips on the table
Intel apparently plans to use potential subsidies to build additional semiconductor production at its sites in Arizona and New Mexico. According to Bloomberg, Intel will likely receive loans and direct grants as part of its subsidies, but both Intel and the US Department of Commerce declined to comment.
Intel also has plans to build a chip factory in Ohio that will become the world’s largest chip factory at nearly 1,000 acres, with a potential of eight chip factories. However, Intel plans to delay completion of the site until 2026, according to the Wall Street Journal.
US Commerce Secretary Gina Raimondo previously described the funding as a “national security investment” but also faced criticism from across the political spectrum for giving too much of the CHIPS funding to Intel instead of the suppliers to further diversify the semiconductor market.