President Biden is set to make a major announcement on Wednesday, revealing plans to award up to $8.5 billion in grants to Intel as part of a significant investment in bolstering the nation’s semiconductor production. This move comes as the Biden administration aims to reduce America’s reliance on foreign countries for semiconductor manufacturing.
The announcement will take place during President Biden’s visit to the Intel campus in Chandler, Arizona, where the funds will go towards the construction and expansion of Intel facilities across the United States. This grant, the largest made by the federal government under the CHIPS Act, is part of a broader effort to establish the U.S. as a leader in semiconductor manufacturing.
With $39 billion in subsidies at their disposal, the Biden administration is leading an ambitious push to ramp up production of semiconductors, crucial components in smartphones, computers, and cars. The goal is to create more manufacturing jobs and reduce the country’s dependence on foreign chipmakers.
The grants will support Intel’s construction projects in Arizona, Ohio, New Mexico, and Oregon, with the aim of creating over 10,000 manufacturing jobs and 20,000 construction jobs. This investment will help fund the construction of new plants, modernization of existing facilities, and the establishment of an innovation hub in Hillsboro, Oregon.
Gina Raimondo, the secretary of commerce, emphasized the importance of increasing domestic production of advanced semiconductors, highlighting the economic and national security implications of relying on foreign chipmakers. The Intel award is expected to help the U.S. produce 20 percent of the world’s leading-edge chips by the end of the decade.
President Biden and his Democratic allies see semiconductor investments as a key strategy to boost the economy and appeal to voters in battleground states like Arizona. The funds are expected to start flowing to Intel by the end of the year, pending the company meeting certain milestones.
Intel’s CEO, Patrick Gelsinger, expressed gratitude for the government incentives and stressed the need for continued investment in the industry to reverse decades of shifting production overseas. The grants to Intel mark the fourth award under the new program, with more expected to be announced for other major chipmakers in the coming months.
Overall, the investment in Intel represents a significant step towards strengthening domestic semiconductor production and reducing reliance on foreign suppliers. The move is part of a broader effort to secure the nation’s technological leadership and economic security in the years to come.
