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Negotiations are underway, and Intel's award package will likely
include both loans and direct grants, according to the report.
The U.S. Department of Commerce, which oversees the disbursement
of CHIPS Act funds, and Intel declined to comment.
The department has already announced two smaller Chips Act
grants and U.S. Commerce Secretary Gina Raimondo said earlier
this month that her department planned to make several funding
awards within two months from the government's $39 billion
program to boost semiconductor manufacturing.
The semiconductor fund is intended to subsidize chip production
and related supply chain investments, and the awards will help
build factories and increase production.
Intel plans to spend tens of billions of dollars to fund chip
factories at longtime sites in Arizona and New Mexico, along
with a new site in Ohio that the Silicon Valley company says
could become the world's largest chip plant.
But the Wall Street Journal reported earlier this month that
Intel planned to delay completion of the Ohio site until 2026
due to a slowdown in the chip market and a slow rollout of
federal dollars.
It remains unclear whether a wave of federal dollars this year
would speed those plans back up, or the plans of Taiwan
Semiconductor Manufacturing Co, which has also applied for U.S.
funding and whose chip factory under construction in Arizona has
been delayed.
Micron and Samsung Electronics are also constructing new chip
factories in the U.S. and have applied to the program.
(Reporting by Stephen Nellis in San Francisco and Mrinalika Roy
in Bengaluru; Editing by Anil D'Silva and Rosalba O'Brien)
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