Friday, March 15th 2024

US Government to Announce Massive Grant for Intel's Arizona Facility

by
AleksandarK
 Discuss (66 Comments)
According to the latest report by Reuters, the US government is preparing to announce a multi-billion dollar grant for Intel's chip manufacturing operations in Arizona next week, possibly worth more than $10 billion. US President Joe Biden and Commerce Secretary Gina Raimondo will make the announcement, which is part of the 2022 CHIPS and Science Act aimed at expanding US chip production and reducing dependence on China and Taiwan manufacturing. The exact amount of the grant has yet to be confirmed, but rumors suggest it could exceed $10 billion, making it the most significant award yet under the CHIPS Act. The funding will include grants and loans to bolster Intel's competitive position and support the company's US semiconductor manufacturing expansion plans. This comes as a surprise just a day after the Pentagon reportedly refused to invest $2.5 billion in Intel as a part of a secret defense grant.

Intel has been investing significantly in its US expansion, recently opening a $3.5 billion advanced packaging facility in New Mexico, supposed to create extravagant packaging technology like Foveros and EMIB. The chipmaker is also expanding its semiconductor manufacturing capacity in Arizona, with plans to build new fabs in the state. Arizona is quickly becoming a significant hub for semiconductor manufacturing in the United States. In addition to Intel's expansion, Taiwan Semiconductor Manufacturing Company (TSMC) is also building new fabs in the state, attracting supply partners to the region. CHIPS Act has a total funding capacity of $39 billion allocated for semiconductor production and $11 billion for research and development. The Intel grant will likely cover the production part, as Team Blue has been reshaping its business units with the Intel Product and Intel Foundry segments.
Sources: Reuters, via Tom's Hardware

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66 Comments on US Government to Announce Massive Grant for Intel's Arizona Facility

#26
Space Lynx
Astronaut
the54thvoidIt's capitalism for the rich, capitalism for the poor. If it was socialism, the government would simply own Intel. In this case, Intel (and all the lobbying arseholes with billions) own ANY government. I'm amazed how folk get this so wrong. In true socialism, there is no private wealth, it's all shared. And it doesn't work-- you know, because people are people. Stop making politics out of western, free business ideals. If you don't want Intel to have so much clout, ironically, you need a socialist mandate. Which never works. This is what you get when you say no. Wealth is power. Suck it up.
I actually disagree with you on this, you would be surprised how integrated a lot of the mega corporations are with the government in all but name. In fact its a thing that free market companies aspire to, Google is looking forward to it because it means they are set for life on money. Government contracts military and non-military is where the real money comes from. Just ask Elon Musk, and every single company he has ever owned would have failed without government subsidies or contracts of some kind, other than the original payment one he started with. I also remember when Amazon sued the government for choosing Microsoft for its big contracts, because well that's how it works, scratch the governments back they scratch yours. Microsoft loves its government contracts ;)
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#27
Vario
Semiconductors require a lot of government subsidy because it is so costly to build the fabs. The reason they are successfully produced in Taiwan is because it was a heavily subsidized effort.
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#28
damric
the54thvoidIt's capitalism for the rich, capitalism for the poor. If it was socialism, the government would simply own Intel. In this case, Intel (and all the lobbying arseholes with billions) own ANY government. I'm amazed how folk get this so wrong. In true socialism, there is no private wealth, it's all shared. And it doesn't work-- you know, because people are people. Stop making politics out of western, free business ideals. If you don't want Intel to have so much clout, ironically, you need a socialist mandate. Which never works. This is what you get when you say no. Wealth is power. Suck it up.
I would prefer the very concept of wealth and currency/capital to become extinct. In that alternate world, Intel would build things for the betterment of mankind, not to satisfy shareholders.
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#29
remekra
damricI would prefer the very concept of wealth and currency/capital to become extinct. In that alternate world, Intel would build things for the betterment of mankind, not to satisfy shareholders.
You can put that dream right next to working Socialism/Communism.
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#30
Wirko
the54thvoidIt's capitalism for the rich, capitalism for the poor. If it was socialism, the government would simply own Intel. In this case, Intel (and all the lobbying arseholes with billions) own ANY government.
Partial government ownership in large companies is nothing out of ordinary in capitalist countries. Japan and Germany (at least) are notable examples. You need fresh money? We'll invest in you.

This wouldn't prevent the business from owning the government, of course. These two things do not exclude each other.
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#31
Space Lynx
Astronaut
damricI would prefer the very concept of wealth and currency/capital to become extinct. In that alternate world, Intel would build things for the betterment of mankind, not to satisfy shareholders.
while I sympathize with you and also would like to see a day come of common sense, it just would never work, for example how are you going to convince people to become plumbers if they have access to anything everyone else does? I sure as fuck don't want to be a plumber, but I am happy to pay them a fuck ton of money if something happens to my sewage system.
WirkoThese two things do not exclude each other.
oh contraire good sir, lot of them from Congress end up working for the bigger companies in various ways, the FDA is a big offender of this too. pat our back we pat yours so to speak... humanity is fucked. lol

www.science.org/content/article/fda-s-revolving-door-companies-often-hire-agency-staffers-who-managed-their-successful

sauce with spaghetti
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#33
damric
Space Lynxwhile I sympathize with you and also would like to see a day come of common sense, it just would never work, for example how are you going to convince people to become plumbers if they have access to anything everyone else does? I sure as fuck don't want to be a plumber, but I am happy to pay them a fuck ton of money if something happens to my sewage system.
There's several ways, but the most plausible is that as part of your mandatory years of service to the people that you might be chosen to work in the plumbing corp if that service suits your ability or if you failed out of a more prestigious community corp. Sanitation is important for a thriving society.
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#34
Niggle
Will they give Intel an exemption to the DEI requirements of the Chip Act, or will Intel be chained down by them??
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#35
Space Lynx
Astronaut
damricThere's several ways, but the most plausible is that as part of your mandatory years of service to the people that you might be chosen to work in the plumbing corp if that service suits your ability or if you failed out of a more prestigious community corp. Sanitation is important for a thriving society.
what those in power decide gaming consoles and PC's serve no purpose to society, or if they don't, how do you distribute who gets a ps5 Pro this November and who doesn't? there are finite resources as you mentioned in your original post.
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#36
remekra
damricThere's several ways, but the most plausible is that as part of your mandatory years of service to the people that you might be chosen to work in the plumbing corp if that service suits your ability or if you failed out of a more prestigious community corp. Sanitation is important for a thriving society.
Chill out Mao, nobody wants to do "mandatory years of service to the people", that just reeks totalitarian regime.
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#37
Space Lynx
Astronaut
remekraChill out Mao, nobody wants to do "mandatory years of service to the people", that just reeks totalitarian regime.
yeah, I don't agree with him, but I do think Democratic Socialism is better way to live, you get benefits of capitalism, yet there is common sense in how things are done and everyone is still taken care of, - Finland is a good example of this. I have lived in Finland two times and it is a pretty damn awesome place.
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#38
InVasMani
VarioSemiconductors require a lot of government subsidy because it is so costly to build the fabs. The reason they are successfully produced in Taiwan is because it was a heavily subsidized effort.
Subsidized effort and a huge workforce populous. You're not going to attract many jobs to a small remote country side ghost town that's for certain. These types of joint effort business efforts always heavily center around a large populous per capita regional area for a reason. Lots of labor and lots of flexibility on labor wages.
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#39
TumbleGeorge
It is so easy. If you don't like these actions, don't support them. Stop buying Intel products, stop buying Intel stock. Elect a Congress and a President who don't do what the current ones are doing.
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#40
stimpy88
Wow. Does this mean that all Americans will be entitled to a free CPU of their choosing?

Such open corruption in the world today.
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#41
FoulOnWhite
i would imagine the benefits are the massive amounts of tax intel pay.
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#42
Dimitriman
Let me put a different perspective to this discussion: how would you feel about grants for more chip manufacturing in the US within the context of China taking over Taiwan and the control of 61% of the global market?
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#43
damric
Space Lynxwhat those in power decide gaming consoles and PC's serve no purpose to society, or if they don't, how do you distribute who gets a ps5 Pro this November and who doesn't? there are finite resources as you mentioned in your original post.
The idea that you must have everything is the problem. Take what you need, have a few extras for entertainment, but stop hoarding for the sake of hoarding. Go exercise or plant a garden.

Back on topic, I find it disgusting that my cousin Pat is using a xenophobic lie to bail out a company for past failures.
remekraChill out Mao, nobody wants to do "mandatory years of service to the people", that just reeks totalitarian regime.
Did your parents not make you do chores before you got to play?
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#45
onemanhitsquad
damricI would prefer the very concept of wealth and currency/capital to become extinct. In that alternate world, Intel would build things for the betterment of mankind, not to satisfy shareholders.
hahahahahaha!
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#46
D´LUC45
Greetings everyone. I would like to express my vision. The vision of a Brazilian, who would like to have more freedom of choice and the market. Believe in a powerful, influential and essential company today. Value this. invest in this, because this could end. and it wouldn't be very pleasant. I wish I had a problem like you North Americans have. Good experts will understand.
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#47
remekra
damricThe idea that you must have everything is the problem. Take what you need, have a few extras for entertainment, but stop hoarding for the sake of hoarding. Go exercise or plant a garden.

Back on topic, I find it disgusting that my cousin Pat is using a xenophobic lie to bail out a company for past failures.



Did your parents not make you do chores before you got to play? See the Israeli model. It's about the only good thing that came of that place.
Yeah my parents. Not my government.

If somebody works hard has money it's their business what they do with that money. If they want to buy 4x14900KS it may be stupid but it's their choice.
Thinking like yours leads to regimes. Believe me USSR when they occupied my country also only wanted for people to be better, for the party, for working people, for good of proletarians around the world.
It's the same tactic, just some slogans change.

But anyway back on topic. US and rest of the world found out that you can't outsource everything to foreign countries, because times did not change that much and wars still exist. So they will give out that grant and probably even more just to have some production in house so that in case China invades Taiwan they are not left empty handed.
Thinking that capital does not have nationality was stupid and seems they have woken up a little at least for now.
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#48
Easo
As far as I am concerned a bit less "democratic" approach to Intel by USA goverment would have reduced that number... Oh well I can always dream.
DimitrimanLet me put a different perspective to this discussion: how would you feel about grants for more chip manufacturing in the US within the context of China taking over Taiwan and the control of 61% of the global market?
This is about half of the reason why there even will be fabs in USA and maybe elsewhere, West woke up and started scrambling.
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#49
Ferrum Master
EasoWest woke up and started scrambling.
Why? ASML is Dutch... look at the income figures. Everyone and their dog is way over stressed about TSMC, but they aren't their bleeding edge equipment makers. ASML also thanks to uncle Zeiss are the only makers of EUV lithography machines and they sell it to TSMC, Intel, SAMSUNG etc.

Everyone is comfortable with TSMC being the leader so they can rig up the prices and blame the situation, witch is artificially maintained to have high margins.

So what really US had to do is to make ASML competitor, but not sure it is possible really due to patents, but instead we have politics, charade and other casual circus... US Chips act... give me a break. A taxpayer moneysink, another excuse.

Everyone forgot also how Intel got their 10B from German government, their teams are actually pretty good at racketeering like in 90ties :D

www.theregister.com/2023/06/19/germany_to_subsidize_intel_10bn/
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#50
mechtech
"the US government is preparing to announce a multi-billion dollar grant for Intel's chip manufacturing operations in Arizona next week, possibly worth more than $10 billion."

For one of the highest earning companies in the states?!?!

What have they been doing with all those profits from the past decade??
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