The Biden administration has agreed to lend Intel up to $11 billion for computer chip factories located in Oregon, Arizona, Ohio, and New Mexico and up to $8.5 billion in direct support.
The Biden administration has agreed to provide Intel up to $11 billion for computer chip plants located in Oregon, Arizona, Ohio, and New Mexico and up to $8.5 billion in direct funding.
Also read: Biden-Harris Administration Sets AI Agenda Following Presidential Directive
According to Intel, the new financing, along with other investments, will result in the creation of 30,000 jobs in manufacturing and construction.
Biden administration to invest $8.5 billion in Intel's computer chip plants in four states. The Biden admin to provide Intel with up to $8.5 billion in direct funding and $11 billion in loans for computer chip plants in Arizona, Ohio, New Mexico and Oregon!
— Dan Peo Sr. (@dadstuff86) March 20, 2024
The Intel-Biden agreement
Speaking from the Intel campus located in Chandler, Arizona, Mr. Biden stated that thousands of new manufacturing jobs—including those that don’t require a college degree—will be supported by the award.
According to Mr Biden, it’s going to transform the semiconductor industry. Additionally, he asked,
“Where the hell is it written that says we’re not going to be the manufacturing capital of the world again?”
The award is the largest that the federal government has made with funds from the CHIPS Act, which lawmakers passed in 2022 to help reestablish the United States as a leader in semiconductor manufacturing. It will go towards constructing and expanding Intel facilities throughout the United States.
With $39 billion in subsidies to disburse, the Biden administration is leading a bold initiative to increase manufacturing of the tiny chips that power computers, smartphones, and automobiles.
The endeavor lies at the core of Mr. Biden’s objective to lessen America’s dependency on other nations: even though the United States invented semiconductors, only roughly 10% of the world’s chips are produced here.
“Nearly all manufacturing of leading-edge chips across the entire industry moved overseas to Asia years ago,” Mr. Biden said.
“Today’s investment is such a big deal: We will enable advanced semiconductor manufacturing to make a comeback here in America.”
Intel to claim federal tax credits
it is anticipated that Intel will file claims for federal tax credits that could offset up to 25% of the cost of its projected $100 billion in five-year U.S. expansion projects.
According to representatives of the Biden administration, the projects are anticipated to generate over 10,000 manufacturing jobs and about 20,000 construction jobs.
The award will aid in increasing the nation’s production of the most cutting-edge semiconductors, which are utilized in artificial intelligence, smartphones, supercomputers, and the most sensitive military hardware, according to Commerce Secretary Gina Raimondo, whose department is in charge of overseeing the grants’ distribution. As of right now, none are produced in the US.
According to Ms. Raimondo, the Intel grant will be the biggest ever given to a chip manufacturer as part of the new initiative. According to her, by the end of the decade, the investment will help the US produce about 20% of the world’s cutting-edge chips.
Ms. Raimondo said at the Intel campus on Wednesday that this investment will enable Intel to produce leading-edge, the most sophisticated chips in the world that will power their economic and national security.
Additionally, Senator Jeff Merkley tweeted that they are making investments in American manufacturing thanks to the CHIPS and Science Act.
and then