US Government Discussing $10 Billion Subsidy Payment to Intel

The Joe Biden administration in the United States is reportedly discussing with Intel the provision of subsidies worth $10 billion (approximately 13.3 trillion KRW), according to multiple sources cited by Bloomberg on the 16th (local time).

According to the report, this $10 billion support package is the largest since the Semiconductor Act was enacted. The support is said to include both loans and direct subsidies.

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Both the U.S. Department of Commerce and Intel declined to comment on the matter. However, the sources emphasized that consultations between the U.S. government and Intel are still ongoing.

The Semiconductor Act includes a total of $52.7 billion (approximately 75.5 trillion KRW) in support over five years, aimed at encouraging semiconductor companies to invest in facilities within the United States, including production subsidies and research and development (R&D) grants.

The U.S. Department of Commerce provided subsidies last December to the British defense contractor BAE Systems, which manufactures semiconductors for U.S. military fighter jets, and last month to the domestic semiconductor company Microchip Technology.

U.S. Secretary of Commerce Gina Raimondo recently stated in a foreign media interview, "We will announce additional companies eligible for subsidies within the next 6 to 8 weeks," adding "The types of facilities that TSMC, Samsung, and Intel propose to build in the U.S. represent next-generation investments and are unprecedented in scale and complexity in the United States."

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