Subsidy finalized! The US government has finally approved a $7.86 billion direct grant to Intel (INTC.US)

As part of the Chips and Science Act, the Biden administration has identified up to $7.86 billion in direct funding for Intel(INTC.US).This is down from the initial $8.5 billion proposed in March. The final total award is less than the proposed initial award due to congressional requests to use the act's funding to pay for a "Secure Enclave" project for the U.S. Department of Defense.Intel won a manufacturing contract for the "Secure Enclave" project in September 2024 worth up to $3 billion.The $7.86 billion in direct financing will support the technology company's $100 billion investment plan to help expand chip production in the U.S. Specifically, the company will use the funds to advance key semiconductor manufacturing and advanced packaging projects at its factories in Arizona, New Mexico, Ohio and Oregon.In addition, Intel plans to apply for the Treasury Department's investment tax credit, which is expected to account for more than 25% of its $100 billion of qualified investments.As previously announced, Intel's investments in the U.S., including those supported by the Chips and Science Act, will support more than 10,000 company jobs, nearly 20,000 construction jobs, and more than 50,000 indirect jobs in the supplier and support industries.Earlier this month, the Biden administration finalized incentive agreements for the Chips and Science Act with TSMC(TSM.US) to spur $65 billion in private investment for three factories in Arizona. This marked the first major deal completed under the Chips and Science Act.The government later also provided up to $1.5 billion in direct funding for GlobalFoundries(GFS) under the Chips and Science Act.The Chips Act provides $39 billion in grants, tens of billions of dollars in loans and a 25% tax credit to promote domestic chip manufacturing. More than two-dozen companies are waiting for government funding.