Intel Investing $3.5 Billion in New Mexico, 10-Digit US Government Subsidies Still Haven't Landed Yet

Intel NASDAQ:INTC announced Monday that information technology was committing $3.5 billion to upgrade its Rio Rancho, New United mexican states facility to expand its Foveros advanced packaging capacity past twoscore%.

Foveros is an advanced 3D packaging technology that allows vertical stacking of compute tiles. This packaging technology is a key component of Intel's latest chips such as the 7nm Meteor Lake processors information technology recently announced. In a weblog post, Intel explained that Foveros allows for the integration of various computing engines across multiple process technologies exceeding what's possible with single-dice integration.

Intel said it's in the process of hiring an additional 700 staff as the facility expands. The company employees 1,800 personnel on-site. Intel is expected to hire one,000 construction workers starting this year and spend $550 million on construction and new infrastructure, co-ordinate to a argument from New United mexican states's government.

All this comes on the heels of Intel'due south renewed push button back into manufacturing with its IDM two.0 foundry program. Intel has committed to investing $20 billion in Arizona for two new fabs as increasing domestic capacity for semiconductor manufacturing becomes a hot topic in the The states.

Intel is Getting Cash From New United mexican states

As part of Intel's annunciation, New Mexico's state government appear that a portion of taxes Intel pays on its construction spending tin can be rebated back to the company. This is expected to be valued at upward to $xiv million, split between the state and the local governments of Rio Rancho and the surrounding County.

In addition, the state has pledged an additional $5 1000000 from a local development fund should Intel hit specific development goals. Sandoval County, home to the Intel plant, is pledging an additional $500,000, with specific task goal requirements. The City of Rio Rancho has pledged $250,000 to the expansion of its development fund which Intel tin can besides access via rebates.

But These Aren't the Subsidies You're Looking For

What New Mexico and various levels of local government in the state are pledging isn't exactly a staggering " ten-digit" subsidy from the US authorities as the maximum value of subsidies provided past stakeholders is approximately $20 million. Understanding the subsidy and incentives procedure that different levels of government provide takes time and dash.

Every bit a representative of New Mexico's Economic Development Department explained to Wccftech , the quoted figures are lifetime totals that are valid if Intel's structure spend hits $550 one thousand thousand (the $14 million is a maximum value that'southward rebatable from the sales taxes Intel pays local contractors) and they hire 700 new employees as promised. Should these goals not be hit, the amount would be less.

Intel's construction rebate is remitted to the company ninety days after payments are recorded by contractors. The employment subsidies are disbursed after the hiring of 250 new employees with boosted disbursement afterward another 250 and so 200.

It's also important to note that these initiatives are provided by New United mexican states's state government, a separate and independent layer of government from the federal government in Washington, D.C. All of this is entirely separate from the CHIPS Act , which has yet to disburse whatever subsidies as it is non yet funded — and even when it is Intel is not specifically guaranteed annihilation as there will be many others fighting over the aforementioned pie. Lawmakers have a lot to work on in figuring out who gets what and there'south zip confirmed yet.