Intel will use the funds to build and expand its facilities in Arizona, Ohio, New Mexico and Oregon

Ben Wodecki, Jr. Editor

March 20, 2024

2 Min Read
Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine.
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President Biden announced Wednesday that Intel has reached a preliminary agreement with the Department of Commerce to provide up to $8.5 billion in direct funding and $11 billion in loans to fund commercial semiconductor manufacturing projects.

The funding comes from the CHIPS and Science Act, which provides subsidies to entice semiconductor manufacturers to build chips in the U.S.

Intel will use the funds to build and expand its facilities in Arizona, Ohio, New Mexico and Oregon.

The company will also use the funding to support its previously announced plans to invest more than $100 billion over the next five years to expand chipmaking capacity and capabilities. Intel will also benefit from an Investment Tax Credit of up to 25% of its investments exceeding $100 billion over five years. 

“AI is supercharging the digital revolution and everything digital needs semiconductors,” said Pat Gelsinger, Intel CEO. “CHIPS Act support will help to ensure that Intel and the U.S. stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”

U.S. Secretary of Commerce Gina Raimondo said the agreement helps incentivize more than $100 billion in investments from Intel, “marking one of the largest investments ever in U.S. semiconductor manufacturing, which will create over 30,000 good-paying jobs and ignite the next generation of innovation.”

Related:White House Budget Backs AI, Chips and Quantum

Biden signed the CHIPS and Science Act into law in August of 2022 to address shortages in the chip supply chain and reclaim control over semiconductor production that had moved overseas. 

Since offering incentives to chipmakers, companies including Micron, Qualcomm and GlobalFoundries said they plan to invest in U.S. facilities, while Samsung disclosed plans to build as many as 11 chip plants in Texas

Applied Materials, which creates equipment used in semiconductor manufacturing, announced last summer plans to invest up to $4 billion on a site in Santa Clara, California that’s expected to open in 2026.

About the Author(s)

Ben Wodecki

Jr. Editor

Ben Wodecki is the Jr. Editor of AI Business, covering a wide range of AI content. Ben joined the team in March 2021 as assistant editor and was promoted to Jr. Editor. He has written for The New Statesman, Intellectual Property Magazine, and The Telegraph India, among others. He holds an MSc in Digital Journalism from Middlesex University.

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