Columbus, Ohio – The semiconductor behemoth Intel has recently disclosed that it is set to receive a substantial federal boost of approximately $20 billion under the CHIPS and Science Act to accelerate semiconductor manufacturing endeavors in four distinctive states across the nation.
This significant financial injection, proposed by the Commerce Department, is earmarked to supply up to $8.5 billion in direct funding to semiconductor initiatives in Arizona, New Mexico, Ohio, and Oregon. Additionally, the Treasury Department is extending up to $11 billion in federal loans, coupled with a generous investment tax credit of up to 25% on investments totaling $100 billion.
Intel’s strategic plan will utilize these funds to actualize its vision of investing over $100 billion in the United States over five years aimed at expanding domestic chipmaking capacity and related critical capabilities essential for economic and national security. Moreover, these initiatives are vital in fostering Intel’s advancement into the realm of cutting-edge artificial intelligence (AI) chips.
Emphasizing the importance of these developments, Intel’s CEO Pat Gelsinger expressed that this moment is pivotal for both the United States and Intel as they endeavor to fuel the next phase of semiconductor innovations. Gelsinger underscored the indispensability of semiconductors in the digital era and the critical role that AI plays in driving the digital revolution forward.
The funding allocation is intended to support the establishment of two new factories and the modernization of an existing facility in Arizona. This financial backing will also facilitate the completion of an advanced chip manufacturing project in Ohio, with additional expansions planned in New Mexico and Oregon. Through these endeavors, Intel aims to forge its legacy in producing some of the most advanced chips in the world, surpassing the current industry benchmarks.
Commerce Secretary Gina Raimondo highlighted that this investment represents one of the most substantial commitments ever made to bolster U.S. semiconductor manufacturing. The Biden administration is keen on elevating America’s share of advanced chip production from zero percent to 20% by 2030 through the CHIPS Act, which was passed on a bipartisan basis in 2022 to bolster domestic chip production and mitigate risks associated with the centralization of semiconductor supply chains in Taiwan and China.
In light of growing tensions in the semiconductor industry due to geopolitical concerns, the investments in U.S.-based chip manufacturing facilities mark a significant step towards ensuring supply chain resilience and fostering technological leadership on American soil. With plans to further expand investments in other major semiconductor players like Samsung of South Korea and TSMC of Taiwan, the U.S. semiconductor industry is poised for a robust resurgence in the years to come.
