Last Updated: 26 November 2024
The U.S. Department of Commerce, along with the Biden-Harris Administration, has awarded $7.86 billion in funding to Intel Corporation. This funding, part of the U.S. CHIPS and Science Act, is a big step towards boosting semiconductor production and advanced packaging in the U.S.
Intel will be using this funding to expand its projects across four states: Arizona, New Mexico, Ohio, and Oregon. The goal is to enhance America's technology leadership and strengthen its semiconductor supply chain.
The $7.86 billion funding, combined with a 25% investment tax credit from the U.S. Treasury, will help Intel execute its $100 billion investment plan. This plan includes expanding manufacturing facilities and building advanced chip packaging capacities. The funding is part of a larger strategy to bring back United States semiconductor leadership, secure the supply chain, and create thousands of new jobs.
“Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security.”
Pat Gelsinger, CEO of Intel
These investments are expected to generate over 80,000 jobs nationwide, including roles in construction, manufacturing, and research and development.
The CHIPS Act, signed into law in 2022, aims to reduce America's reliance on foreign semiconductor supplies. The pandemic exposed vulnerabilities in the U.S. supply chain, highlighting the need for more domestic production.
This funding shows the U.S. government's confidence in Intel's role in building a reliable semiconductor industry in the country.
In addition to the direct funding, Intel will also receive a $3 billion contract to expand trusted manufacturing for the U.S. government. This includes work under the Secure Enclave program, which aims to develop advanced semiconductors for national security.
Intel's $100 billion investment plan includes building new facilities and upgrading existing ones in Arizona (Silicon Desert), New Mexico (Silicon Mesa), Ohio (Silicon Heartland), and Oregon (Silicon Forest). These sites will be central to semiconductor and advanced packaging projects that are key to the U.S. chip supply chain.
In Ohio, Intel is building two new facilities, an investment of up to $28 billion. Although there have been delays due to market challenges, this initiative will significantly boost U.S. production capacity and contribute to the nation's semiconductor revival. Meanwhile, Intel's Arizona facilities remain important manufacturing hubs as part of its original foundry push.
Despite recent layoffs and declining revenue, Intel is determined to advance its Foundry business, transitioning to a model of producing chips designed by other companies, such as Amazon Web Services (AWS).
Intel has also faced regulatory setbacks, including abandoning a $5.4 billion merger with Tower Semiconductor. Instead, Intel and Tower have partnered, with Intel providing additional manufacturing capacity to Tower.
Intel's partnership with the Midwest Microelectronics Consortium (MMEC) further demonstrates its commitment to strengthening the U.S. supply chain. The projects funded under the Microelectronics Commons initiative involve over 30 MMEC members and aim to advance domestic microelectronics technology.
Part of Intel's CHIPS funding is dedicated to workforce development, ensuring there are skilled workers ready for future semiconductor production.
$65 million has been set aside for training programs, supporting education across all levels and promoting diversity in construction roles through the CHIPS Women in Construction Framework. Intel is also investing in expanding childcare facilities near its sites to support working families, showing a commitment to providing a supportive work environment.
This historic CHIPS funding award not only supports Intel's ambitious growth plans but also marks a major milestone for America's semiconductor industry, reshaping technology production and creating sustainable growth for the future.
