“This agreement marks one of the largest investments ever in US semiconductor manufacturing, which will create over 30,000 good-paying jobs and ignite the next generation of innovation,” US Secretary of Commerce Gina Raimondo said in March.
The CHIPS Act has allocated $39 billion in direct government funding to bolster domestic manufacturing, with Intel receiving the largest individual award. Other recipients of CHIPS Act funding include Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung, both of which are also expanding their US operations.
Intel’s ambitious plans and strategic challenges
While the deal offers a lifeline, Intel’s recent struggles have drawn scrutiny. Despite its ambitious plans, Intel has yet to fully capitalize on its investments. The company’s heavy spending on manufacturing has not been matched by sufficient revenue growth, particularly in its PC and server chip businesses. This has led to speculation that Intel could potentially sell parts of its business, including its manufacturing arm.
