Intel Corporation (NASDAQ:INTC) and the Biden-Harris Administration announced that the U.S. Department of Commerce will award Intel up to $7.86 billion in funding under the CHIPS and Science Act.

The funding will support semiconductor manufacturing and advanced packaging projects at Intel’s facilities in Arizona, New Mexico, Ohio, and Oregon. Additionally, Intel plans to leverage the U.S. Treasury Department’s Investment Tax Credit, covering up to 25% of qualified investments exceeding $100 billion.

Since the CHIPS and Science Act was enacted over two years ago, Intel has committed over $100 billion to expand chipmaking and advanced packaging capabilities in the U.S., crucial for economic and national security.

These investments will create tens of thousands of jobs, bolster U.S. supply chains, advance domestic R&D, and reinforce American leadership in semiconductor manufacturing and technology innovation.

Read: Intel’s Federal Chips Grant Shrinks Below $8B As Biden Administration Recalibrates CHIPS Act Funding: Report

Pat Gelsinger, CEO of Intel, said, “With Intel 3 already in high-volume production and Intel 18A set to follow next year, leading-edge semiconductors are once again being made on American soil.”

“Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security. Intel is deeply committed to advancing these shared priorities as we further expand our U.S. operations over the next several years.”

U.S. Secretary of Commerce Gina Raimondo said, “The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and Intel is expected to play an important role in the revitalization of the U.S. semiconductor industry.”

The award follows the completion of Commerce’s due diligence and the previously signed preliminary memorandum of terms, alongside the announced investment tax credit.

The final award amount is reduced compared to the preliminary proposal due to a congressional mandate allocating CHIPS funding to cover the $3 billion Secure Enclave program.

These efforts are expected to support over 10,000 Intel jobs, nearly 20,000 construction jobs, and more than 50,000 indirect jobs across suppliers and related industries.

Investors can gain exposure to the stock via First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL) and REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI).

Price Action: INTC shares are up 0.68% at $25.04 premarket at the last check Tuesday.

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This article Intel To Receive Nearly $8 Billion In Federal Funding Under CHIPS Act for US Expansion originally appeared on Benzinga.com

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