Intel Corporation (NASDAQ: INTC) stock rose on Tuesday amid news of discussions between the chipmaker and the Biden administration regarding potential subsidies exceeding $10 billion for semiconductor manufacturing.
The recent Bloomberg report suggests discussions are underway, with a package likely to include a combination of loans and direct grants.
The subsidies originate from the 2022 Chips and Science Act, which allocated $39 billion in direct grants and loan guarantees valued at $75 billion to aid semiconductor companies in manufacturing chips in the U.S.
The exact division of Intel’s (INTC) award between grants and loans remains uncertain, as stated by the WSJ.
Last month, The Wall Street Journal revealed that the Biden administration will provide billions of dollars in subsidies to Intel (INTC), Taiwan Semiconductor (TSM), and other semiconductor firms in the coming weeks for new manufacturing facilities.
The WSJ had reported that the announcement of subsidies is expected before Biden’s State of the Union address on March 7, while a separate Bloomberg report hinted at a possible end-of-March timeline. Industry executives who spoke to the WSJ also expect Micron (MU), Texas Instruments (TXN), and GlobalFoundries (GFS) to receive subsidies.
In August, a year after the enactment of the U.S. CHIPs Act, the White House extolled its accomplishments, including the fact that over 460 companies have expressed interest in receiving funding.
Intel (NASDAQ: INTC) Stock Movement
INTC stock rose 2.32% to close at $44.52 on Tuesday. The traders had exchanged hands with 61,385,463 (61.38 million) shares compared to the average daily trading volume of 42.32 million.
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