Intel entered into a direct funding agreement with the U.S. Department of Commerce on November 25, 2024 under the CHIPS Act. The DOC agreed to award up to $7.8 billion in direct funding and $65 million in workforce development funding.

1. 01

   Intel entered into a direct funding agreement with the U.S. Department of Commerce on November 25, 2024 under the CHIPS Act. The DOC agreed to award up to $7.8 billion in direct funding and $65 million in workforce development funding.

2. 02

   The company said it will receive funding for twelve semiconductor manufacturing and advanced packaging facility projects in Arizona, New Mexico, Ohio and Oregon, along with related workforce activities. It said disbursements will be made as milestones are achieved, reimbursing eligible costs that Intel has already incurred and paid.

3. 03

   The company said it is subject to restrictions on dividends and share repurchases under the agreement. It also said it must spend at least $35 billion on research and development in the United States cumulatively from 2024 through 2028.

4. 04

   The company said it may be required to share a portion of the Project Return with the DOC if a project's cumulative realized unlevered free cash flow exceeds specified thresholds. Payments under this requirement are capped at 75% of the Awards received for the project. In the event of certain significant breaches, the DOC may require repayment of Awards.

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Original filing

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