06:29 AM EDT, 03/20/2024 (MT Newswires) -- Intel ( INTC ) and the US Department of Commerce signed a non-binding preliminary memorandum of terms for up to $8.5 billion in direct funding to Intel ( INTC ) for commercial semiconductor projects under the CHIPS and Science Act.

The proposed funding will help advance Intel's ( INTC ) semiconductor manufacturing and research and development projects in Arizona, New Mexico, Ohio, and Oregon, the company said early on Wednesday.

The funding will support Intel's ( INTC ) plans to invest more than $100 billion in the US over five years to expand chipmaking capacity and capabilities in the country, the chipmaker said.

Intel ( INTC ) added that it also expects to benefit from a US Treasury Department's investment tax credit of up to 25% on more than $100 billion in qualified investments and eligibility for federal loans up to $11 billion.

Shares of Intel ( INTC ) rose 4.3% in premarket activity.

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