Intel To Spend Billions In Four Us States

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Intel To Spend Billions In Four Us States

Intel To Spend $100 Billion In Four Us States

According to media reports, the tech giant Intel is planning to spend around $100 billion in 4 US states. The said funds will be used to build and even expand already established factories.

Intel is also planning on securing both federal grants and loans worth $19.5 billion. Additionally, the company is also hopeful that it will get tax breaks of $25 billion as well.

Intel Shares Up By 4%

The $100 billion fund will be spent over a span of 5 years and will allow Intel to turn empty fields into one of the largest chip-manufacturing factories (AI) in the world. As for when that will be started, the CEO cited that it will be as soon as the year 2027.

The aces to government funds is already a done deal, as even the US officials announced it on Wednesday. It appears that Intel will be benefiting from the CHIPS act, a bill aimed at bolstering the chip manufacturing capabilities of US corporations.

After the news, Intel shares jumped by 4% during the premarket trading session. Once the market session officially starts, more upside is expected in the Intel shares.

Intel's plan includes sites in various areas, such as Arizona, Oregon, and even New Mexico. In these areas, Intel will be spending money to expand operations and even build new facilities.

It is also worthwhile to note that Taiwan Semiconductor Manufacturing is also involved in building a big semiconductor factor in these areas. Now that a US firm is stepping in, there's a good chance that Intel will also receive some big funds from the federal government.

According to experts, the funds from the federal government will allow Intel to not only improve but also recover from its existing business model.

If we look back, Intel has been at the forefront of making the best and smallest chips in the world. This also enables Intel to sell these chips at a premium price.

However, all of this changed when TSMC took over Intel's spot in the 2010s. As a result, Intel had to cut its prices in order to maintain its market share.

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