Intel Receives Funding Under the CHIPS Act

Intel has secured up to $7.865 billion from the U.S. government under the CHIPS Act, aimed at bolstering domestic semiconductor manufacturing. This funding will be allocated for new factories and expansion projects across several states, including Arizona and New Mexico, in response to supply chain challenges highlighted during the COVID era. The financial support is viewed as a move to diminish the reliance on Asian chip production, as the U.S. currently holds only about 12% of the global semiconductor market. Intel's agreement includes a prohibition on stock buybacks for five years, emphasizing a commitment to reinvestment in U.S. manufacturing capabilities.