The U.S. government has pledged up to $7.865 billion in direct funding to Intel Corp. for its semiconductor manufacturing projects, which are anticipated to generate thousands of jobs. Alongside this, the company plans to leverage a 25% investment tax credit, bolstering its commitment to invest over $100 billion within the United States.
Intel, in collaboration with the Biden-Harris Administration, revealed that the U.S. Department of Commerce has finalized the grant terms under the CHIPS and Science Act. The funds will be released incrementally as Intel achieves specific project milestones.
Originally proposed at $8.5 billion, the funding has been reduced due to a legislative directive requiring CHIPS funding to support the $3 billion Secure Enclave program.
This $3 billion contract allocated to Intel facilitates the expansion of cutting-edge semiconductor manufacturing for the U.S. government.
With this financial backing, Intel aims to progress its semiconductor manufacturing and advanced packaging projects across Arizona, New Mexico, Ohio, and Oregon.
Intel emphasizes that its planned U.S. investments, including endeavors beyond those under the CHIPS Act, are projected to create over 10,000 company jobs, nearly 20,000 construction jobs, and upwards of 50,000 indirect positions within supplier and ancillary industries.
The CHIPS Act funding will directly aid Intel’s investments in developing and producing some of the world's most sophisticated chips and semiconductor packaging technologies. The key sites are in Arizona, dubbed the Silicon Desert; New Mexico, known as the Silicon Mesa; Ohio, the Silicon Heartland; and Oregon, the Silicon Forest.
Since the enactment of the CHIPS and Science Act over two years ago, Intel has outlined plans to invest more than $100 billion in U.S. semiconductor and advanced packaging capacity expansion.
The government’s financial support for chipmakers is aimed at reinforcing the U.S. semiconductor supply chain’s resilience, advancing U.S. technological leadership, and elevating global competitiveness.
To date, CHIPS for America has committed over $19 billion out of the proposed $36 billion in incentives funding. These funds, distributed across 20 states, are anticipated to create more than 125,000 jobs.
U.S. Secretary of Commerce Gina Raimondo stated, "The CHIPS for America program is set to propel American technology and innovation, enhancing national security. Intel is expected to be pivotal in reigniting the U.S. semiconductor industry. Thanks to President Biden and Vice President Harris’s leadership, our CHIPS funding is spurring one of the most significant investments in U.S. semiconductor manufacturing history."
