The US Department of Commerce has awarded up to $7.86bn in direct funding to Intel to advance its commercial semiconductor manufacturing projects.

Allocated under the CHIPS and Science Act, the funding will support the development of the company’s semiconductor manufacturing facilities in Arizona, New Mexico, Ohio, and Oregon.

Intel has committed to invest more than $100bn by the end of the decade in chipmaking and advanced packaging capacity in the US.

US Secretary of Commerce Gina Raimondo said: “The CHIPS for America programme will supercharge American innovation and technology and make our country more secure – and Intel is playing an important role in the revitalisation of the US semiconductor industry through its unprecedented investments across Arizona, New Mexico, Ohio, and Oregon.

“Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award is enabling Intel to drive one of the most significant semiconductor manufacturing expansions in US history.”

The latest funding is expected to create tens of thousands of jobs and reinforce US supply chains.

The award follows a preliminary terms agreement signed in March 2024, and the completion of the department’s due diligence.

However, the award is a reduction from the initial $8.5bn proposal as Intel received a separate $3bn award from the CHIPS and Science Act in September 2024 to develop a “Secure Enclave” for microelectronics.

Intel is also planning to claim the Treasury Investment Tax Credit, covering up to 25% of qualified investments exceeding $100bn.

Furthermore, Intel is collaborating with the Midwest Microelectronics Consortium as part of the CHIPS Act’s Microelectronics Commons initiative.

This partnership involves more than 30 MMEC members from various sectors and is focused on advancing domestic microelectronic technology to bolster the US-based supply chain.