US to hand Intel billions in grants and loans to expand US semiconductor plants

Intel has also indicated it plans to tap investment tax credits from the Treasury Department that could cover as much as 25% of capital expenditures, according to the Commerce Department

Intel CEO Pat Gelsinger has been trying to restore Intel’s technological capabilities. Picture: Leah Farrell / RollingNews.ie

The US will award Intel $8.5bn (€7.83bn) in grants and as much as $11bn (€10.13bn) in loans to help fund an expansion of its semiconductor factories, marking the largest award from a programme designed to re-invigorate the country's domestic chip industry.

The package will support more than $100bn (€92.08bn) in US investments from Intel, including efforts to produce cutting-edge semiconductors at large-scale plants in Arizona and Ohio, the US Commerce Department announced on Wednesday.