Intel Corporation is set to receive a staggering $8.5 billion injection under the CHIPS and Science Act, marking the largest investment granted under the program. This monumental agreement, tentatively reached with the Department of Commerce, signifies a significant boost for the American semiconductor giant, facilitating substantial expansions in its U.S. manufacturing operations.
The allocated funds will primarily fuel the expansion of Intel’s U.S. manufacturing facilities, specifically targeting the development of advanced semiconductor chips crucial for powering artificial intelligence and other cutting-edge applications. Intel’s ambitious plans include the construction of two new state-of-the-art logic chip plants and the modernization of existing facilities across four states.
Key projects earmarked for support include the construction of new facilities in Chandler, Arizona, and New Albany, Ohio, alongside the modernization of existing plants in Rio Rancho, New Mexico, and capacity expansion in Hillsboro, Oregon. This substantial financial injection supplements Intel’s previously announced $100 billion investment in U.S. manufacturing over the next five years, reinforcing its commitment to domestic semiconductor production.
Under the terms of the agreement, Intel can also access additional funding of up to $11 billion through borrowing from the U.S. government, further bolstering its financial capacity to execute these ambitious expansion plans. The Biden administration’s backing of the CHIPS and Science Act, initiated in 2022 to enhance domestic semiconductor research and manufacturing, underscores its commitment to reducing U.S. dependence on foreign suppliers, particularly in China.
Intel’s projects are projected to create a substantial number of job opportunities, with an estimated 20,000 construction and 10,000 manufacturing positions anticipated across the supported regions. Recognizing the importance of local workforce development, the government has allocated $50 million for training and skill development initiatives to ensure communities benefit directly from these endeavors.
However, it’s important to note that these terms are subject to change pending the results of due diligence on proposed projects, and potential renegotiations in the future. Nonetheless, this landmark investment underscores the pivotal role of the semiconductor industry in driving economic growth and technological advancement in the United States.
Source: Engadget