Intel NASDAQ: INTC announced Monday that it is committing to commit $ 3.5 billion to modernize its Rio Rancho, New Mexico plant to increase its advanced packaging capacity of Foveros by 40 percent.
Foveros is an advanced 3D packaging technology that enables vertical stacking of compute tiles. This packaging technology is a key component of Intel’s latest chips such as the 7nm Meteora Lake recently announced processors. In a blog post, Intel explained that Foveros enables the integration of various IT engines across multiple process technologies beyond what is possible with single-chip integration.
Intel said it is in the process of hiring an additional 700 people as the facility expands. The company employs 1,800 people on site. Intel is expected to hire 1,000 construction workers starting this year and spend $ 550 million on construction and new infrastructure, according to a New Mexico government statement.
This all follows Intel’s new push into manufacturing with its IDM 2.0 foundry plan. Intel has pledged to invest $ 20 billion in Arizona for two new factories, as increasing domestic semiconductor manufacturing capacity becomes a hot topic in the United States.
Intel gets money from New Mexico
As part of Intel’s announcement, the state government of New Mexico announced that a portion of the taxes Intel pays on its construction expenses can be refunded to the company. This is expected to be valued at $ 14 million, split between state and local governments in Rio Rancho and the surrounding county.
In addition, the state has pledged an additional $ 5 million from a local development fund if Intel meets specific development goals. Sandoval County, home to the Intel plant, pledges an additional $ 500,000, with specific job goal requirements. The city of Rio Rancho has pledged $ 250,000 for the expansion of its development fund which Intel can also access through rebates.
But these are not the grants you are looking for
What New Mexico and the various levels of local government in the state are promising isn’t exactly staggering.10-figure grant from the US government because the maximum value of grants awarded by stakeholders is approximately $ 20 million. Understanding the subsidy and incentive process offered by different levels of government takes time and nuance.
As a representative of the New Mexico Department of Economic Development explained: Wccftech, the figures shown are lifetime totals valid if Intel’s construction expenses reach $ 550 million (the $ 14 million is a maximum refundable value on sales taxes that Intel pays to local contractors) and they are hiring 700 new employees as promised. If these targets were not met, the amount would be less.
Intel’s build rebate is returned to the company 90 days after contractors’ payments are recorded. Employment subsidies are paid after 250 new employees are hired with additional disbursements after 250 and then 200 more.
It is also important to note that these initiatives are provided by the State Government of New Mexico, a separate and independent layer of government from the federal government in Washington, DC. All of this is entirely separate from the CHIPS law, which has yet to pay any grants because it is not yet funded – and even when it comes to Intel, nothing is specifically guaranteed as there will be plenty more fighting for it. same cake. Lawmakers have a long way to go in determining who gets what and there is nothing confirmed yet.