Intel is set to receive a substantial injection of $8.5 billion from the U.S. government under the CHIPS and Science Act, marking the largest investment ever made under this legislation. This agreement, reached with the Department of Commerce, underscores the government’s commitment to bolstering domestic semiconductor manufacturing and reducing dependence on foreign suppliers, particularly those in China.
The funds allocated to Intel will be utilized to bolster the company’s U.S. manufacturing operations, particularly in the expansion of advanced semiconductor chip fabrication facilities, aimed at catering to burgeoning sectors such as artificial intelligence and other cutting-edge applications. Intel’s ambitious plans span across multiple states, with proposed projects including the construction of two new advanced logic chip plants and the modernization of existing facilities in key locations such as Chandler, Arizona, and New Albany, Ohio.
Moreover, the investment will facilitate the modernization of two existing plants in Rio Rancho, New Mexico, and the expansion of capacity in Hillsboro, Oregon. This substantial injection of capital comes as part of Intel’s broader commitment to invest $100 billion in U.S. manufacturing over the next five years. Furthermore, as a testament to the scale of the partnership, Intel has the option to borrow an additional $11 billion from the U.S. government if required.
The CHIPS and Science Act, signed into law by the Biden administration in 2022, aims to fortify domestic semiconductor research and manufacturing, strategically positioning the U.S. as a global leader in this critical industry. This marks the fourth such investment under the CHIPS Act and stands as the most significant to date. Combining Intel’s own financial commitment with government funding, this initiative ranks among the largest investments ever announced in U.S. semiconductor manufacturing.
The impact of Intel’s expansion projects is expected to be substantial, with projections indicating the creation of 20,000 construction and 10,000 manufacturing jobs across the designated regions. To ensure that local communities benefit from these developments, the government has earmarked $50 million for workforce training and development initiatives. However, it’s worth noting that these terms are subject to change pending the results of due diligence on proposed projects and any subsequent negotiations with the Commerce Department.
This landmark agreement underscores the strategic importance of semiconductor manufacturing in the U.S. and signals a significant milestone in Intel’s ongoing efforts to strengthen its foothold in the global semiconductor market. With this infusion of capital and support from the government, Intel is poised to embark on an ambitious expansion journey that promises to not only drive innovation but also create economic opportunities for communities across the nation.
Source: Engadget
