Intel has reached a preliminary agreement with the US Commerce Department to receive $8.5 billion in funding for commercial semiconductor manufacturing, supporting the company’s efforts to build new facilities across the country.
Intel Secures $8.5 Billion Funding for US Semiconductor Manufacturing
Intel has reached a preliminary agreement with the US Commerce Department to receive $8.5 billion in direct funding for commercial semiconductor manufacturing in the United States. This funding is part of the CHIPS Act, which aims to revitalize domestic chip production and support Intel’s efforts to build new facilities across the country.
( Credit to: Tomshardware )
As a leading player in national security matters, Intel is the only chipmaker with design, R&D, and manufacturing capabilities in the United States. This funding will help offset costs for Intel’s chipmaking facilities in Arizona, New Mexico, Ohio, and Oregon.
( Credit to: Tomshardware )
The agreement includes $8.5 billion in direct funding, $11 billion in low-interest loans, and a 25% investment tax credit on up to $100 billion of Intel’s capital investments. The funding will enable Intel to make significant investments in manufacturing, with a portion of the funds allocated to building new facilities and the rest for installing tools in the fabs.
Intel’s Expansion Plans and Job Creation
Under this agreement, Intel plans to build two leading-edge fabs in Arizona, convert two fabs into packaging facilities in New Mexico, and establish two planned leading-edge fabs in Ohio. The Hillsboro, Oregon campus will also undergo expansion and modernization.
These expansion plans are expected to create up to 30,000 jobs in construction and chip development. Intel will also invest in training local workers and provide childcare reimbursement programs, contributing to job growth and economic development in these regions.
Benefits for Intel and the US Semiconductor Industry
Intel CEO Pat Gelsinger anticipates that the company will receive tax benefits of over $25 billion from the investment tax credit. This funding agreement marks the largest announcement under the CHIPS Act, which aims to provide a total of $52 billion in funding to boost domestic chip production.
With this funding, Intel is well-positioned to play a crucial role in the country’s chip industry and national security. The company’s investments will not only boost its own manufacturing capabilities but also contribute to the United States’ goal of producing 20% of the world’s leading-edge chips by 2030.
Intel’s Ongoing Discussions with Defense and Intelligence Agencies
While this funding agreement applies to Intel’s commercial endeavors, the company is also in active discussions with US defense and intelligence agencies for potential additional funding. These discussions aim to address national security concerns and ensure the availability of domestically produced semiconductors for critical applications.
Conclusion
The preliminary agreement between Intel and the US Commerce Department for $8.5 billion in funding marks a significant step towards revitalizing domestic chip production. With this funding, Intel can make substantial investments in manufacturing and expand its facilities across the United States, creating jobs and contributing to the country’s chip industry and national security.
As Intel continues its discussions with defense and intelligence agencies, the company’s commitment to producing domestically sourced semiconductors for critical applications remains a top priority. With the support of the CHIPS Act, Intel is well-positioned to play a crucial role in the country’s chip industry and contribute to its goal of producing 20% of the world’s leading-edge chips by 2030.
