Intel's (INTC, Financial) CEO Pat Gelsinger has lashed out over the slow disbursement of the expected funding from the U.S. CHIPS and Science Act, although the firm has committed $30 billion in manufacturing in the country. In a recent interview with Yahoo!, Speaking to finance's executive editor Brian Sozzi, Gelsinger lamented the slow progress of government support since Biden passed the CHIPS Act.
Since the law was instituted more than two years ago, Intel has sought growth in its US activities. For instance, it began chip packing in New Mexico and began constructing new chip manufacturing plants in Arizona and Ohio. However, as expected, there is no CHIPS Act funding, alongside weaker demand for CPUs and the delayed launch of Intel Foundry's contractual functionality of chip manufacturing for agreements.
It is clear that Intel, a global semiconductor company, did get $3 billion of Secure Enclave money for military chips. However, the company feels this is not enough considering what it spends. Gelsinger further stated that the firm was still working with the CHIPS Office to enhance the funding process. He also discussed the tax relief aspects of the CHIPS Act, saying that they are much more valuable than grants; this indicates that although grant recovery is slow, the tax subsidies maintain the company's financial health.
Despite such challenges, Gelsinger is keen on making the most of the grants provided by the CHIPS Act and the tax incentives derived from it to underscore Intel's determination to improve its manufacturing edge in the US despite current odds.
