President Biden is set to grant Intel a multibillion-dollar award to boost chip production in the United States. This move aligns with Biden’s economic policies and aims to strengthen the US semiconductor industry, reducing reliance on technology from East Asia. Intel, along with other chip makers like Samsung, Micron, and TSMC, will benefit from the award.
The White House aims to accelerate semiconductor investments and enhance apprenticeship programs to prepare the workforce for factories in states like Arizona and Texas. Intel’s CEO, Patrick Gelsinger, is leading efforts to restore the company’s technology lead and US position in chip production. Intel faces competition from TSMC and Samsung but plans to introduce new production processes and expand its foundry business.
Gelsinger has initiated an expansion campaign with new or upgraded factories in multiple countries, including the US, Ireland, Israel, and Germany. While waiting for the CHIPS Act grant, Intel has relied on debt financing to fund the expansion. However, Gelsinger faces pressure from board members to justify the significant expenditures on new factories.