Intel Corporation is set to receive a substantial financial injection of $8.5 billion from the U.S. government under the CHIPS and Science Act, marking the largest investment made under this initiative. The tentative agreement, struck with the Department of Commerce, aims to fortify Intel’s domestic manufacturing capabilities, particularly in the realm of advanced semiconductor chip production for applications like artificial intelligence.
This public investment will bolster Intel’s endeavors across four states, encompassing the construction of two cutting-edge logic chip plants and the modernization of existing facilities. Projects in Chandler, Arizona, and New Albany, Ohio, will witness the establishment of new facilities, while upgrades are slated for plants in Rio Rancho, New Mexico, and Hillsboro, Oregon. The $8.5 billion funding infusion complements Intel’s ambitious $100 billion investment earmarked for U.S. manufacturing over the ensuing five years. Additionally, Intel retains the option to borrow up to $11 billion from the U.S. government as part of the agreement.
The CHIPS and Science Act, signed by the Biden administration in 2022, is designed to revitalize domestic semiconductor research and production, mitigating American companies’ dependence on Chinese suppliers. This latest allocation represents the administration’s fourth investment under CHIPS, signaling a concerted effort to strengthen the nation’s semiconductor ecosystem. When combined with Intel’s own financial commitment, this partnership constitutes one of the most substantial investments in U.S. semiconductor manufacturing to date. Earlier in February, the government pledged $1.5 billion in CHIPS Act funding to GlobalFoundries, a division of AMD, to facilitate the establishment of new fabrication facilities.
Intel’s initiatives across these regions are projected to generate 20,000 construction jobs and 10,000 manufacturing positions. Recognizing the importance of workforce development, the government has allocated $50 million for training programs aimed at enhancing the skills of local communities. However, these terms are subject to change pending the completion of due diligence on proposed projects and any subsequent renegotiation by the Commerce Department.
Source: Engadget