Intel getting government incentives for foundry

Research: We did some digging and found numbers

Apr 5, 2021 by

Intel LogoDuring Intel’s unleashed event a few weeks ago, CEO Pat Gelsinger talked about building out fab capacity. While a lot of the wording was a bit vague, SemiAccurate dug into the details and found out a few interesting numbers.

If you recall, Gelsinger was adamant that the two new fabs Intel is building were Intel’s plans, Intel funded, and their own doing. He also hinted that there would be more capacity announced in the future for the US and there was interest from the EU as well. Nothing was said specifically but it is clear that something was in the works so we dug in.

What SemiAccurate found was there is indeed a lot of money coming in to Intel, and others, truly staggering dollar amounts. We don’t like to use the term subsidy because of the negative connotations, think Foxconn scamming Wisconsin politicians desperate to play to a specific group of voters. More to the point, the money flowing into Intel is said to be much more of an incentive to get the wheels rolling faster. For national security reasons the US and EU desperately need more capacity on their soil in a much faster time frame than Intel or anyone else would likely have done on their own. Think about this more like the funding that kickstarted Covid-19 vaccine production rather than lining of some politician’s relative’s pockets.

While the exact terms of these deals have yet to be revealed, SemiAccurate can tell you how much money is involved and a bit about when some of it will be announced. The numbers involved are staggeringly large, the smaller of them is 10 digits, but what Intel needs to do is an equally daunting task. If you were thinking that this round of Intel’s foundry plans are a dalliance like the last three or four, you are dead wrong.

Note: The following is analysis for professional level subscribers only.

Disclosures: Charlie Demerjian and Stone Arch Networking Services, Inc. have no consulting relationships, investment relationships, or hold any investment positions with any of the companies mentioned in this report.

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Charlie Demerjian

Roving engine of chaos and snide remarks at SemiAccurate
Charlie Demerjian is the founder of Stone Arch Networking Services and SemiAccurate.com. SemiAccurate.com is a technology news site; addressing hardware design, software selection, customization, securing and maintenance, with over one million views per month. He is a technologist and analyst specializing in semiconductors, system and network architecture. As head writer of SemiAccurate.com, he regularly advises writers, analysts, and industry executives on technical matters and long lead industry trends. Charlie is also available through Guidepoint and Mosaic. FullyAccurate