The Biden-Harris administration has announced Intel could receive up to $8.5 billion in potential direct funding to ram up domestic production of semiconductors.
The US Department of Commerce has offered Intel a non-binding preliminary memorandum of terms (PMT) to provide the funding under the CHIPS and Science act.
The CHIPS act is an incentive put forward by the Biden administration to secure the domestic production of chips, rather than relying on Taiwan’s manufacturing capabilities that could be sabotaged by China.
Billions of dollars for CHIPS
Semiconductor chips are essential for almost every electronic device, especially those involved in the latest AI technologies and cutting edge military capabilities. So having the manufacturing capabilities needed for producing chips so close to China is not the best idea.
Intel is set to invest over $100 billion into its sites in the US, creating tens of thousands of jobs, and helping to secure the domestic manufacturing of semiconductors.
U.S. Secretary of Commerce Gina Raimondo commented on the PMT, stating that, “There is no one who cares more about revitalizing American manufacturing than President Biden, and today’s announcement is a massive step towards ensuring America’s leadership in manufacturing for the 21st century.”
“With this agreement, we are helping to incentivize over $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.”
“This announcement is the culmination of years of work by President Biden and bipartisan efforts in Congress to ensure that the leading-edge chips we need to secure our economic and national security are made in the U.S.”
The proposed investment would also increase employment opportunities and funding for sites in Arizona, New Mexico, Ohio and Oregon, thanks to the increased fabrication and distribution facilities. There is also the opportunity for Intel to secure loans from the $11 billion set aside in the CHIPS act for this purpose.
While the PMT is still subject to change before being agreed by both Intel and the Department of Commerce, this announcement puts the Biden administration within touching distance of completing the goals set forth in the CHIPS and Science act.
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