Intel Corporation stands to receive a staggering $8.5 billion injection from the U.S. government under the CHIPS and Science Act, marking the largest investment ever made under this legislation. This transformative funding signals a robust endorsement of Intel’s pivotal role in advancing domestic semiconductor research and manufacturing capabilities.
Under a tentative agreement with the Department of Commerce, Intel could harness these funds to bolster its U.S. manufacturing facilities, particularly focusing on expanding fabs for advanced semiconductor chips primed for applications in artificial intelligence and other cutting-edge technologies.
This significant public investment is anticipated to underpin Intel’s initiatives across four states, including the construction of two state-of-the-art advanced logic chip plants and the modernization of existing facilities in strategic locations such as Chandler, Arizona, New Albany, Ohio, Rio Rancho, New Mexico, and Hillsboro, Oregon. Complementing Intel’s substantial commitment, the $8.5 billion government infusion will complement the company’s colossal $100 billion investment in U.S. manufacturing over the next five years. Moreover, Intel retains the flexibility to access up to $11 billion in additional funds through borrowing under the agreement.
The CHIPS and Science Act, signed into law by the Biden administration in 2022, aims to bolster domestic semiconductor research and manufacturing, strategically reducing U.S. companies’ dependence on Chinese suppliers. This latest tranche of investment represents the administration’s fourth significant allocation under the CHIPS Act, firmly positioning Intel at the forefront of U.S. semiconductor resurgence. The synergistic amalgamation of Intel’s financial commitment and government funding crystallizes into one of the most substantial investments in U.S. semiconductor manufacturing to date. In a parallel initiative, the government also earmarked $1.5 billion in CHIPS Act funding for GlobalFoundries, a division of AMD, to bolster its fab construction endeavors.
Intel’s expansive projects across the designated regions are projected to catalyze the creation of 20,000 construction jobs and 10,000 manufacturing positions, underscoring the far-reaching socio-economic impact of this collaboration. To ensure the local workforce benefits from these developments, the government will allocate $50 million towards training and skill development programs. However, these terms are contingent upon the preliminary agreement, subject to potential revisions by the Commerce Department following due diligence on proposed projects and subsequent negotiations.
Source: Engadget
