President Biden is set to issue a multibillion-dollar award to Intel on Wednesday to expand its chip production in the United States, according to sources familiar with the decision. This announcement comes as the president promotes his economic policies during a tour of the Southwest, with the event taking place in Phoenix, Arizona.
The award is part of Mr. Biden’s $39 billion CHIPS and Science Act, which aims to strengthen the U.S. semiconductor industry and reduce reliance on technology manufactured in East Asia. The president has made increasing chip production a key focus in efforts to compete with China and boost domestic manufacturing.
While details of the award for Intel have not been disclosed by White House officials, it is expected to be the first of several grants for chip makers, including Samsung, Micron, and the Taiwan Semiconductor Manufacturing Company. The administration is eager to accelerate the implementation of semiconductor investments, but some companies have faced challenges. For example, T.S.M.C. delayed initial manufacturing at its Arizona factory to 2025 due to a lack of expertise among local workers in installing advanced equipment.
In addition to financial support, the Biden administration is emphasizing the importance of apprenticeship programs to prepare a skilled workforce for chip manufacturing facilities in states like Arizona and Texas. The funding is crucial for Intel and its CEO, Patrick Gelsinger, who has been working to restore the company’s technology leadership in manufacturing and strengthen the U.S. position in global chip production.
Intel has faced setbacks in recent years, allowing competitors like T.S.M.C. and Samsung to advance in chip manufacturing. However, under Gelsinger’s leadership, the company has embarked on an ambitious plan to introduce new production processes and expand its business model to compete in the foundry business.
Despite facing pressure to justify expenditures on new factories, Intel has been proactive in its expansion efforts, with projects underway in various locations around the world. Gelsinger has been vocal in advocating for the CHIPS Act and has expressed impatience with the pace of government subsidies distribution.
The announcement of the award to Intel is eagerly awaited by industry observers and stakeholders, as it represents a significant step in strengthening the U.S. semiconductor industry and reducing reliance on foreign technology.
