Intel Corp. (INTC) is being awarded $8.50 billion from the U.S. government through the Chips and Science Act that aims to make America more self-sufficient at making semiconductors.
The administration of U.S. President Joe Biden has approved the funding for the chipmaker to help Intel develop microchip and semiconductor manufacturing on U.S. soil.
Intel said the government funding will support the creation of factories in Arizona, New Mexico, Ohio, and Oregon.
The company added that it also expects to receive federal loans up to $11 billion U.S. and a tax credit benefit on up to 25% of more than $100 billion U.S. in qualified investments.
Intel chief executive officer (CEO) Pat Gelsinger said the combination of government grants, loans, and tax benefits will make manufacturing microchips and semiconductors in the U.S. economically viable and lessen America’s reliance on low-cost manufacturing hubs in Asia.
The U.S. Congress passed the Chips and Science Act in 2022, setting aside tens of billions of dollars to bolster domestic chip manufacturing and help the country move away from Taiwan, which is a disputed territory claimed by China.
Earlier this year, Intel halted construction on a $20 billion U.S. chip plant in Ohio while it awaited government funding to come through.
The stock of Intel has risen 44% in the last 12 months and currently trades at $42.05 U.S. per share.