Intel said it will be making $8.5bn in revenue thanks to a deal with the US government.
The chipmaker says that the multi-billion dollar deal is part of an agreement it signed under the 2022 US semiconductor funding act formally known as Creating Helpful Incentives to Produce Semiconductors, aka CHIPS.
Under the terms of the deal, Intel will be given some $8.5bn in funding to build chips in the US.
"Today is a defining moment for the US and Intel as we work to power the next great chapter of American semiconductor innovation," Intel boss Pat Gelsinger said in a quote marking the occasion.
"AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help to ensure that Intel and the US stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future."
It appears as if the current deal will only cover commercial projects, rather than any plans for government exclusive technology.
When asked by The Stack about the nature of the projects, a spokesperson said "Today’s funding announcement only supports Intel's US commercial projects in Arizona, Ohio, Oregon, and New Mexico."
The deal is part of a larger effort by Intel and the US government to step up semiconductor production in the US.
Intel says that it wants to pump some $100bn into the US economy in order to restore the country to prominence in the chipmaking game and bring about jobs to areas of the country that have been hardest hit by the decline in industry production, such as the states of Ohio and Oregon where factory production has tailed off.
The hope is that new semiconductor plants will help fill the void and bring about new jobs.
"This announcement is the culmination of years of work by President Biden," said US Secretary of Commerce Gina Raimondo, "and bipartisan efforts in Congress to ensure that the leading-edge chips we need to secure our economic and national security are made in the US”
