There are reports that the U.S. government announced that the U.S. Department of Commerce awarded Intel Corporation up to $7.865 billion in direct funding under the CHIPS Incentive Program. The grant was awarded based on a preliminary agreement signed on March 20, 2024, and due diligence completed by the Ministry of Commerce. The grant will directly support Intel's projected investment of nearly $90 billion in the U.S. by 2029 as part of Intel's overall expansion plan of more than $100 billion. In the future, the Department of Commerce will gradually release these funds according to Intel's progress in completing project milestones.
U.S. Secretary of Commerce Gina Raimondo said, "The CHIPS for America program will greatly advance U.S. innovation and technology and enhance national security. Intel is playing a vital role in revitalizing the U.S. semiconductor industry through significant investments in Arizona, New Mexico, Ohio, and Oregon. Thanks to the leadership of President Biden and Vice President Harris, the 'CHIPS' program enables Intel to drive one of the largest semiconductor manufacturing expansions in U.S. history.”
"Today's funding agreement marks important progress in President Biden's implementation of the CHIPS and Science Act and the Invest in America agenda, which are designed to bring manufacturing back to the United States, create thousands of good-paying jobs, and strengthen our economy," said Natalie Quillian, White House Deputy Chief of Staff. Intel's nationwide investment is yet another example of the substantial benefits that the Invest in America agenda can bring to the American people.”
Figure: Intel receives nearly $8 billion in CHIPS Act funding
Advancing cutting-edge technology and national security
Cutting-edge semiconductors are at the heart of the world's most advanced technologies, including research and development of artificial intelligence (AI) and critical military capabilities. Intel's manufacturing technologies, such as Intel's 18A process and advanced packaging technology, combined with its foundry services, will significantly enhance U.S. supply capacity in these high-end chip segments. This investment from the Department of Commerce will support Intel's manufacturing and packaging projects in Arizona, New Mexico, Ohio, and Oregon.
Intel's expansion is expected to create about 10,000 manufacturing jobs and 20,000 construction jobs in these four states, adding substantial growth to the U.S. labor market, according to previous plans.
Intel accelerates the return of U.S. manufacturing
Intel CEO Pat Gelsinger said, "The Intel 3 has begun mass production, the Intel 18A will go into production next year, and cutting-edge semiconductors will once again be produced in the United States. Shared bipartisan support for restoring U.S. leadership in technology and manufacturing is driving this historic investment, which is critical to long-term U.S. economic growth and national security. Intel remains steadfast in its commitment to advancing these shared goals and will continue to expand its presence in the U.S. in the coming years.”
Summary
This funding not only supports Intel's expansion, but also marks a key step on the road to the revival of the semiconductor industry in the United States. Through this funding, the U.S. government has not only made progress in increasing domestic semiconductor production capacity and safeguarding national security, but has also created a large number of high-paying jobs by promoting the reshoring of manufacturing. Intel's investment will have a long-term positive impact on the U.S. economy and further strengthen U.S. technology leadership in the global semiconductor industry.
