After receiving $ 19.5 billion from federal grants, Intel is embarking on a $ 100 billion investment plan aiming to build and expand factories across the US, with the expectations of gaining another $ 25 billion in tax benefits.

Under the CHIPS Act, the chipmaker giant is said to be granted with federal funds while the company experienced a four percent rise in premarket trading.

In addition to its renovation plans in New Mexico and Oregon, Intel seeks to expand operations in Arizona alongside its competitor Taiwan Semiconductor Manufacturing Co., which is also building a factory believed to be funded by the US President Joe Biden in the coming days.

With the funds procured from the Biden’s proposal for a more extensive chip manufacturing revival, Intel looks forward to recovering from its hampered business model.

For many years, Intel has been maintaining its mark globally for producing the minutest and fastest semiconductors, pricing at premium rates and for reinvesting in its R&D to keep up its competency level.

But by 2010, TSMC overtook Intel regarding production, resulting in the latter’s profit margins to decline as it slashed prices to maintain market dominance with subpar products.

In 2021, Pat Gelsinger proposed lifting up Intel and is said to have sought the government’s aid in making the plan profitable.

Gelsinger believes that about 30 percent of the $ 100 billion plan will be divided by labor, pipes and concrete during construction. The rest will be poured into purchasing chip-making equipment from companies like Tokyo Electron, Applied Materials, ASML and KLA among others.

Through those equipment, the Ohio location is hoped to be functional by 2027 or the following year, with Gelsinger cautioning that there are chances for the deadline to be missed if the chip industry collapses. Intel intends to use its current funds for the majority of its purchases, excluding grants and loans.

Reiterating his earlier remarks this week, Gelsinger stated that it is likely going to take another round of US investment for chip plants to get the country back to the forefront of semiconductor manufacture.

Overall, however, even as competitors expand domestically, Jimmy Goodrich, a technical adviser and semiconductor export specialist at RAND Corp., believed that Intel will remain the most significant chipmaker for American interests.