The Biden administration is releasing $7.865 billion in CHIPS act grant money for Intel projects in New Albany and three other states.
It's less than the $8.5 billion in direct funding that President Joe Biden said would be released along with $11 billion in loans in March.
That's because the reduction is largely a consequence of the $3 billion that Intel is also receiving to provide computer chips to the military.
In a release, the U.S. Department of Commerce said the award will directly support Intel’s nearly $90 billion investment by the end of the decade.
The department will release the funds based on Intel’s completion of project milestones.
“The CHIPS for America program will supercharge American innovation and technology and make our country more secure – and Intel is playing an important role in the revitalization of the U.S. semiconductor industry through its unprecedented investments across Arizona, New Mexico, Ohio, and Oregon,” U.S. Secretary of Commerce Gina Raimondo said. “Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award is enabling Intel to drive one of the most significant semiconductor manufacturing expansions in U.S. history.”
Intel CEO Pat Gelsinger said, “Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security. Intel is deeply committed to advancing these shared priorities as we further expand our U.S. operations over the next several years.”
In August, Gelsinger said Intel would cut 15% of its headcount by the end of the year as part of a cost-reduction plan.
Intel continues work on its $20 billion New Albany facility in Licking County, with construction expected to be finished in 2027.
