Intel’s CEO is disappointed with payments under the US CHIPS law. Since its adoption, the company has invested $30 billion in factories in the United States and has not received direct investment from the state.
Intel CEO Pat Gelsinger spoke about this in an interview with Yahoo! Finance. Slow financing hinders the company and encourages it to resort to alternative investments.
«We see the CHIPS Act as an important thing that we have invested a lot of energy in. As we said during the [earnings] call, we’re frustrated with the time it’s taken to get this done: it’s been over two years since the CHIPS Act was passed, and in that period we’ve invested $30 billion in U.S. manufacturing and received $0 in CHIPS grants. It’s taking too long, we need to complete this».
Since enactment of the CHIPS and Science Act Intel started assembling chips at its New Mexico fab and started building new fabs in Arizona and Ohio. Due to the lower demand for processors and the very slow start of Intel Foundry as a contract manufacturer, Intel had to postpone the launch of the Ohio campus for a couple of years, but the company invested heavily in its facilities in the United States. It is worth mentioning that Intel received $3 billion under the Secure Enclave program to finance the production of military chips.
«However, we are working closely with the CHIPS office and engaging constructively with them to finish what we started. But I also want to point out that [CHIPS includes] subsidies and tax [rebates] — the share of taxes is about three times higher than the share of subsidies in the CHIPS law. And we see that continuing [as] part of the tax law at this time, so we will still see that benefit,” Helsinger added.
Despite the fact that Intel should receive about $8.5 billion direct investment, up to $11 billion in loans and a 25% tax credit, the company still hasn’t received the $8.5 billion. As a result, Intel had to make sure that it could build its fabs even without direct funding from the US government. Intel has launched a semiconductor joint investment program (SCIP), which in the case of its Fab 52 and Fab 62 in Arizona means that these production facilities will be managed by Intel, but 49% will be owned by co-owners Brookfield Asset Management.
Pat Helsinger is convinced that Intel will be able to complete the projects it has started with or without CHIPS funding. «But we look forward to completing what we started with CHIPS, the most important industrial policy law in the United States, which we are proud to be a part of».
Source: Tom’s Hardware
