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Intel (NASDAQ:INTC) is in discussions with the Biden administration to be awarded more than $10 billion in subsidies for building semiconductors.
The award package is likely to include both loans and direct grants, according to a Bloomberg report on Friday, which cited people familiar with the matter. Negotiations are still ongoing.
The subsidies are from the 2022 Chips and Science Act, which set aside $39 billion in direct grants as well as loans and loan guarantees worth $75 billion to help semiconductor companies make chips in the US.
Intel (INTC) and the Commerce Department declined to comment to Bloomberg.
It’s not exactly known how Intel’s (INTC) award will be split between grants and loans, the WSJ said.
The news comes after the WSJ reported late last month that the Biden administration was expected to award billions of dollars in subsidies to Intel (INTC), Taiwan Semiconductor (TSM), and other semiconductor firms in the coming weeks for new factories.
The WSJ said at the time the subsidies were expected to be announced before Biden’s State of the Union speech on March 7, though a separate Bloomberg report indicated the timing may be the end of March. Micron (MU), Texas Instruments (TXN), and GlobalFoundries (GFS) are also likely to be awarded subsidies, industry executives told the WSJ.
In August, one year after the U.S. CHIPs Act was signed into law, the White House touted its achievements, including the fact that more than 460 companies have submitted statements of interest to receive funding.