Intel Corporation (NASDAQ: INTC) stock rose 1.49% in the pre-market trading Thursday after the company signed a non-binding preliminary memorandum of terms (PMT) for direct funding under the CHIPS and Science Act.
Intel, the tech giant, has signed a preliminary memorandum of terms (PMT) with the U.S. Department of Commerce, securing up to $8.5 billion in direct funding for commercial semiconductor projects under the CHIPS and Science Act.
Pat Gelsinger, Intel’s CEO, has declared this a defining moment for both the U.S. and Intel, underscoring the significance of driving the next phase of American semiconductor innovation.
Gelsinger further stated,
“AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help to ensure that Intel and the U.S. stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”
Under the PMT, Intel can draw up to $11 billion in federal loans. The company also plans to claim the Investment Tax Credit from the U.S. Treasury Department. The credit could amount to up to 25% of qualified investments exceeding $100 billion over five years.
Intel’s investments in the U.S. will create over 10,000 jobs within the company and nearly 20,000 in construction. The proposed government funding will back several initiatives in Arizona, New Mexico, Ohio, and Oregon.
Gelsinger has led an event celebrating the direct funding announcement by Intel under the CHIPS and Science Act on Wednesday.
Intel (NASDAQ: INTC) Stock Price Action
INTC stock jumped 1.47% in the pre-market trading on Thursday after closing the regular trade at $42.20 on Wednesday. The traders had exchanged hands with 74,366,732 (74.36 million) shares compared to the average daily trading volume of 44.07 million.
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