Intel Corporation stands to receive a monumental $8.5 billion boost from the U.S. government under the CHIPS and Science Act, marking the largest investment made under this initiative. This unprecedented agreement, reached with the Department of Commerce, signals a pivotal moment in bolstering domestic semiconductor research and manufacturing capabilities.
The substantial funding will be allocated to support Intel’s U.S. manufacturing operations, with a focus on expanding facilities for advanced semiconductor chip production, crucial for powering artificial intelligence and other cutting-edge applications. Intel’s ambitious plans encompass the construction of two new advanced logic chip plants and the modernization of existing facilities across four states, including Arizona, Ohio, New Mexico, and Oregon.
Specifically, the investment will facilitate the construction of two cutting-edge chip plants in New Albany, Ohio, and modernization efforts in Chandler, Arizona, alongside capacity expansions in Hillsboro, Oregon. Furthermore, existing plants in Rio Rancho, New Mexico, will undergo modernization initiatives. This massive injection of government funding supplements Intel’s own $100 billion commitment to U.S. manufacturing over the next five years.
Under the agreement, Intel also has the option to borrow up to an additional $11 billion from the U.S. government, should the need arise, showcasing the depth of support for strengthening domestic semiconductor capabilities. The CHIPS and Science Act, signed into law by the Biden administration in 2022, aims to reduce reliance on Chinese suppliers and boost domestic semiconductor research and manufacturing.
This significant investment underscores the administration’s commitment to fostering innovation and securing America’s leadership in semiconductor technology. Combined with Intel’s own financial backing, this infusion of capital represents one of the largest commitments to U.S. semiconductor manufacturing to date.
Intel’s ambitious expansion plans are projected to generate 20,000 construction jobs and 10,000 manufacturing positions across the aforementioned regions. Recognizing the importance of local workforce development, the government has earmarked $50 million for training and skill development programs to ensure the community benefits from these initiatives.
While the preliminary agreement sets forth these terms, the Commerce Department retains the flexibility to adjust them based on due diligence findings and potential renegotiation in the future. Nonetheless, the impending influx of funding marks a significant milestone in fortifying America’s semiconductor manufacturing capabilities.
Source: Engadget