iStock
The Biden administration has proposed up to $8.5bn in direct funding and $11bn in loans to Intel through the CHIPS and Science Act to advance the company’s commercial semiconductor projects at various US sites.
Semiconductors were first invented in the US; however, over the years chip manufacturing in the country has significantly depleted. Today the US produces less than 10% of the world’s chips, and none of the most advanced ones that will revolutionise the AI era.
However, the Biden Administration is keen to change that. Under the CHIPS and Science Act, various investments have already been made in semiconductor manufacturing.
This has now been given a further boost, with the US government announcing that under this CHIPS Act, Intel will receive up to $8.5bn in direct funding, along with $11bn in loans for commercial semiconductor projects.
President Biden travelled to Intel’s Ocotillo campus in Chandler, Arizona, today to make the announcement in person.
The proposed funding would help advance Intel’s critical semiconductor manufacturing and R&D projects at its sites in Arizona, New Mexico, Ohio and Oregon, creating nearly 30,000 jobs and supporting thousands of indirect jobs.
“Today is a defining moment for the US and Intel as we work to power the next great chapter of American semiconductor innovation,” said Intel CEO Pat Gelsinger.
“AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help to ensure that Intel and the US stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”
The CHIPS Act proposed funding – together with Intel’s previously announced plans to invest more than $100bn in the US over five years – constitutes one of the largest public-private investments ever made in the US semiconductor industry, according to the US government.
The hope is that these investments will strengthen US supply chains, and help ensure American leadership in leading-edge semiconductor manufacturing and technology capabilities.
“This announcement is the culmination of years of work by President Biden and bipartisan efforts in Congress to ensure that the leading-edge chips we need to secure our economic and national security are made in the US,” said US secretary of commerce Gina Raimondo.
