President Biden is expected to announce that his administration will award up to $8.5 billion in grants to Intel to bolster semiconductor production in the U.S. during a tour of battleground states. This investment is part of an effort to re-establish the nation as a leader in semiconductor manufacturing. The grants are part of a larger $39 billion effort to ramp up production of chips that power various devices. In addition to grants, Intel will also receive up to $11 billion in loans and federal tax credits for its expansion projects.
The grants will support Intel’s construction plans in Arizona, Ohio, New Mexico, and Oregon, creating thousands of manufacturing and construction jobs. The funding will help Intel establish new facilities and modernize existing plants to produce advanced semiconductors used in various technologies. The investment aims to reduce America’s reliance on foreign countries for semiconductor production.
The Secretary of Commerce, Gina Raimondo, emphasized the importance of increasing domestic semiconductor production for economic and national security reasons. The Intel award is the largest grant to a chipmaker under the new program and is expected to position the U.S. as a key player in semiconductor manufacturing.
Intel CEO, Patrick Gelsinger, expressed optimism about the incentives but noted that more investment may be needed to fully restore semiconductor manufacturing in the U.S. Intel is the fourth company to receive federal grants under the program, with more awards expected to be announced in the future.
Overall, the investment in Intel and other semiconductor companies is seen as a crucial step in reducing America’s dependence on foreign sources for advanced chips. The grants will also support workforce development and training to fill the new positions created by the expansion of semiconductor facilities.
