On February 16th local time, according to Bloomberg citing sources familiar with the situation, the Biden administration in the United States is in negotiations to provide Intel with subsidies exceeding $10 billion. Negotiations are currently underway.

Last Friday, some media reported, citing sources familiar with the matter, that this massive chip manufacturing subsidy plan may include loans and direct funding, and negotiations on some details between the two sides are still ongoing.

It is reported that these subsidies come from the Chips and Science Act introduced by the Biden administration in 2022. The Chip and Science Act aims to expand the manufacturing capacity of high-end chips in the United States, especially high-performance chips under the 5nm high-end process, in order to comprehensively enhance the competitiveness of the United States in the global chip manufacturing field and reduce dependence on external supply chains.

Intel, the American IDM model chip manufacturing giant, is considered by most Wall Street analysts to be most likely to receive high government subsidies. Intel and the US Department of Commerce declined to comment on the insider information cited by the media. Insiders also stated that it is currently unclear how the subsidies received by Intel will be allocated between direct funding subsidies and special loans.

The US Department of Commerce, responsible for overseeing the payment of funds under the Chip and Science Act, has previously announced two smaller grants. Includes funding provided to BAE Systems and Microchip Technology US subsidiaries. US Secretary of Commerce Gina Raymond announced earlier this month that the US Department of Commerce plans to make several appropriations within two months from the government's $39 billion funding to promote semiconductor manufacturing

The US Department of Commerce and Intel declined to comment on the above report.

Semiconductor manufacturing giants such as Samsung Electronics and TSMC are also expected to receive high subsidies

According to media reports at the end of last month, the Biden administration is expected to provide billions of dollars in subsidies to leading chip manufacturing companies such as Intel, TSM. US, Samsung Electronics, Micron Technologies (MU.US), and others in the coming weeks to build new factories in the United States.

The media reported at the time that the details of this high subsidy were expected to be announced before President Biden's State of the Union speech on March 7th local time. However, another media report indicated that the specific time may be around the end of March. According to media reports citing sources familiar with the situation, some executives in the US chip industry have indicated that American analog chip leader TXN. US and renowned chip manufacturer Global Foundries (GFS. US) may also receive subsidies.

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