Intel Corporation is set to receive a monumental investment of $8.5 billion under the CHIPS and Science Act, marking the largest allocation under the initiative. This substantial financial boost from the U.S. government is poised to propel Intel’s U.S. manufacturing endeavors to new heights, particularly in the domain of advanced semiconductor production for applications such as artificial intelligence.
Under the terms of a tentative agreement with the Department of Commerce, Intel stands to benefit from this direct government funding, aimed at expanding the chipmaker’s manufacturing footprint across the United States. The allocated funds will facilitate the establishment of two new cutting-edge logic chip plants, along with the modernization of existing facilities in key locations such as Chandler, Arizona, and New Albany, Ohio. Furthermore, Intel’s initiatives will encompass the enhancement of facilities in Rio Rancho, New Mexico, and the augmentation of capacity in Hillsboro, Oregon.
This substantial influx of $8.5 billion in government funding will complement Intel’s ambitious $100 billion investment in U.S. manufacturing over the next five years. Moreover, as part of the agreement, Intel retains the option to borrow up to an additional $11 billion from the U.S. government if required, underscoring the magnitude of this collaborative endeavor.The CHIPS and Science Act, signed into law by the Biden administration in 2022, aims to fortify domestic semiconductor research and manufacturing capabilities while mitigating reliance on foreign suppliers, particularly those in China. This latest injection of funds represents the fourth installment of CHIPS Act investments and stands as the most substantial to date. When combined with Intel’s own financial commitments, this initiative represents one of the largest investments ever announced in U.S. semiconductor manufacturing.
Intel’s expansion projects across multiple states are projected to yield significant economic benefits, generating approximately 20,000 construction jobs and 10,000 manufacturing positions. Recognizing the importance of local workforce development, the government will allocate $50 million towards training initiatives to ensure communities surrounding these facilities reap the rewards of this substantial investment.
However, it’s crucial to note that the terms outlined in the preliminary agreement are subject to potential revisions by the Commerce Department, contingent upon due diligence assessments and future negotiations. Nevertheless, this monumental partnership between Intel and the U.S. government signifies a pivotal step towards bolstering domestic semiconductor manufacturing capabilities and maintaining global technological leadership.
Source: Engadget https://www.engadget.com/intel-will-get-85-billion-in-chips-act-funding-to-support-its-us-manufacturing-efforts-090046810.html
