NurPhoto/NurPhoto via Getty Images
Intel (NASDAQ:INTC) is in discussions with the Biden administration to secure more than $10 billion in subsidies for semiconductor construction.
The rewards package will likely include both loans and direct grants, according to a Bloomberg report on Friday cited people familiar with the matter. Negotiations are still ongoing.
The subsidies come from the Chips and Science Act of 2022, which allocates $39 billion in direct grants as well as $75 billion worth of loans and loan guarantees to help semiconductor companies make chips in the United States.
Intel (INTC) and the Commerce Department declined to comment to Bloomberg.
It’s not known exactly how Intel’s (INTC) award will be split between grants and loans, the WSJ said.
The news comes after the WSJ reported late last month that the Biden administration was expected to award billions of dollars in subsidies to Intel (INTC), Taiwan Semiconductor (TSM) and other semiconductor companies in the coming weeks for new factories.
The WSJ said at the time that the subsidies were expected to be announced before Biden’s State of the Union address on March 7, although a separate Bloomberg report indicated the timing could be as late as March. Micron (MU), Texas Instruments (TXN) and GlobalFoundries (GFS) will also likely receive subsidies, industry executives told the WSJ.
In August, a year after the US CHIPs Act was signed into law, the White House touted its results, including that more than 460 companies submitted expressions of interest in receiving funding.