Under the CHIPS and Science Act, Intel receives a huge amount of assistance from the US government. According to a preliminary agreement reached with the Department of Commerce, the company can receive up to $8.5 billion in direct funding from the government.
This money will be used to expand production capacity in the United States, including fabs designed to produce advanced semiconductor chips for artificial intelligence and advanced relationships.
Public investment is expected to support Intel’s projects in four states. This includes the construction of two new advanced fabs and the modernization of another in Chandler, Arizona, as well as the construction of two more fabs in New Albany, Ohio. It will also help Intel modernize two existing fabs in Rio Rancho, New Mexico, and expand its facilities in Hillsboro, Oregon.
The government’s $8.5 billion financing will complement the company’s $100 billion investment in US production, which is planned to be made over the next 5 years. And if the company needs more money, it can borrow up to $11 billion from the US under the agreement.
US President Joe Biden signed the CHIPS and Science Act back in 2022 to promote domestic research and production of semiconductors and reduce the dependence of American companies on Chinese suppliers. This is the administration’s fourth and largest investment in CHIPS. When combined with Intel’s own funds and government funding, this is one of the largest investments announced in semiconductor manufacturing in the United States overall. In February, the government also announced that it was providing $1.5 billion in funding to GlobalFoundries under the CHIPS and Science Act to help build new fabs.
Intel’s projects in the aforementioned regions are expected to create 20,000 construction and 10,000 manufacturing jobs. To help the local population benefit from these projects, the government will also allocate $50 million for local workforce training and development.
Source: Engadget