The Biden administration has announced that it will award up to $7.86 billion in direct funding to Intel, with the company set to receive at least $1 billion by the end of the year. The funds are part of the CHIPS Act, a bipartisan bill passed in 2022, which aims to reduce the US’s reliance on foreign production of semiconductors.
The announcement comes as Intel faces financial pressure due to a sales slump and has extended timelines for some projects beyond the original 2030 government deadline. However, Commerce Department officials say that the changes in timeline and jobs projections were not a factor in the final award.
The funding will support the construction of two chip-making plants in Ohio, which are expected to create around 6,500 jobs. The first plant is now expected to be operational by 2030, while Intel’s initial goal was to start production there in 2025.
“This is a huge step forward in strengthening the US semiconductor supply chain,” said Secretary of Commerce Gina M. Raimondo. “After a 30-year dip, the industry is coming back, and these facilities will fundamentally change chip manufacturing and the strength of the chip industry in the US.”
The Biden White House says that the US is now on track to produce 30% of the world’s leading-edge chips by 2032. Intel’s recent financial struggles have sparked concern among some government officials and lawmakers, but the administration remains committed to supporting the company.
Under the deal, Intel will receive nearly $3.94 billion for its projects in Arizona, $500 million for New Mexico, $1.5 billion for a major factory in Ohio, and $1.86 billion for Oregon. The funding is part of a broader effort to rev up domestic chip-making and reduce reliance on foreign production.
Source: https://www.nytimes.com/2024/11/26/business/economy/intel-chips-award-biden.html