Intel Semiconductor Act Subsidies 11 Trillion Won... 900 Billion Won Decrease Due to Investment Delays

"Measures Considering Receiving 4.2 Trillion Won in Military Semiconductor Production Subsidies"
Also Not Accepting 15.4 Trillion Won Loan Support from US Government

The Joe Biden administration in the United States has decided to provide Intel with a subsidy of 11 trillion won under the Chips Act.

A smartphone with the Intel logo is on display. Photo by Reuters and Yonhap News.

On the 26th (local time), the U.S. Department of Commerce announced in a statement that it would provide Intel with up to $7.865 billion (approximately 11 trillion won) to enhance semiconductor capabilities and create jobs. This is the largest subsidy granted under the U.S. semiconductor manufacturing support program.

The amount provided this time decreased by $635 million (approximately 887.2 billion won) from the initially planned $8.5 billion (approximately 11.9 trillion won). In March, the Biden administration had reached a preliminary agreement to provide Intel with up to $8.5 billion in direct funding.

Due to Intel's recent investment delays and management difficulties, the support amount was reduced. Intel postponed the construction of its semiconductor plant in Ohio, originally scheduled to be completed by the end of next year, to the late 2020s. Additionally, the company is facing a crisis, conducting large-scale restructuring due to poor performance. Competitors such as Qualcomm have expressed interest in acquiring Intel. Reports predicting a reduction in Intel's subsidy amount have also been continuously emerging.

However, U.S. government officials clarified that this reduction is a measure considering a separate subsidy Intel receives for producing advanced military semiconductors. Intel is receiving approximately $3 billion (about 4.2 trillion won) from the U.S. government for military semiconductor production.

Meanwhile, although Intel had reached a preliminary agreement for a $11 billion (approximately 15.4 trillion won) loan provision from the Biden administration, it decided not to accept the support. A senior Intel official stated, "Intel decided not to take the loan without disclosing detailed reasons."