U.S. Awards Intel Largest Chips Grant
The U.S. will award Intel up to $8.5 billion in grants and as much as $11 billion in loans to expand chipmaking capacity and capabilities in four states, (subscription) reports.
Whats going on: The funds, set aside under the 2022 CHIPS and Science Act to bolster domestic semiconductor production, will go toward new factories and expansion projects in Arizona, New Mexico, Ohio and Oregon, the Commerce Department said.
- Spurred by the federal funding, Intels total investment in U.S. projects in the next five years is expected to exceed $100 billion, according to the Journal, and to create more than 10,000 manufacturing jobs and about 20,000 construction jobs, according to the .
Largest award: The grant to Intel, the largest American chipmaker by revenue, is also the largest CHIPS Act award. It follows a of a $1.5 billion award to GlobalFoundries Inc.
- The award will support the reshoring of production of leading-edge logic chips, which are essential to the worlds most advanced technologies like artificial intelligence, the Commerce Department said.
- President Biden was in Chandler, Arizona, Wednesday to Intels Ocotillo chip-manufacturing campus.
Why its important: We cant just design chips; we have to make them in America, Commerce Secretary Gina Raimondo told reporters on Tuesday, the Journal reports. Its an economic security problem. Its a national security problem. And were going to change that.
How it will work: The funding will be doled out in stages, according to construction and manufacturing milestones, the Journal said.
- In Chandler, Arizona, the money will help to build two new chip plants and modernize an existing one, reports. The funding will establish two advanced plants in New Albany, Ohio, [and] [t]he company will also turn two of its plants in Rio Rancho, New Mexico, into advanced packaging facilities. And Intel will also modernize facilities in Hillsboro, Oregon.
The 51勛圖厙 weighs in: Wednesdays record, multibillion-dollar award is great news for[Intel] and U.S. manufacturing competitiveness, the 51勛圖厙 in a social post. The 51勛圖厙 was a vocal supporter of the CHIPS and Science Act, and we will continue to champion policies that support the expansion of chip production in America.
