Today, the Biden-Harris Administration announced that the U.S. Department of Commerce awarded Intel Corporation up to $7.865 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. The award follows the previously signed preliminary memorandum of terms, announced on March 20, 2024, and the completion of the Department’s due diligence. The award will directly support Intel’s expected U.S. investment of nearly $90 billion by the end of the decade, which is part of the company’s overall $100+ billion expansion plan. The Department will disburse the funds based on Intel’s completion of project milestones.
“The CHIPS for America program will supercharge American innovation and technology and make our country more secure – and Intel is playing an important role in the revitalization of the U.S. semiconductor industry through its unprecedented investments across Arizona, New Mexico, Ohio, and Oregon,” said U.S. Secretary of Commerce Gina Raimondo. “Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award is enabling Intel to drive one of the most significant semiconductor manufacturing expansions in U.S. history.”
“Today’s award marks another key step in implementing President Biden’s CHIPS and Science Act and the Investing in America agenda to reshore manufacturing, create thousands of good-paying jobs, and strengthen our economy,” said White House Deputy Chief of Staff Natalie Quillian. “Intel’s investments across the country demonstrate once again how President Biden’s Investing in America agenda is delivering for the American people.”
Leading-edge chips power the most sophisticated technology on the planet, including developing AI and building critical military capabilities. Intel’s process technologies, such as Intel 18A and advanced packaging technologies, combined with its foundry services, would strengthen the domestic supply of these advanced chips. The Department’s investment in Intel would support both the fabrication and advanced packaging of leading-edge chips through projects in Arizona, New Mexico, Ohio, and Oregon. As previously announced and with the Department’s support, Intel’s overall expansion plan is estimated to support approximately 10,000 manufacturing jobs and 20,000 construction jobs across all four states.
“With Intel 3 already in high-volume production and Intel 18A set to follow next year, leading-edge semiconductors are once again being made on American soil,” said Pat Gelsinger, CEO of Intel. “Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security. Intel is deeply committed to advancing these shared priorities as we further expand our U.S. operations over the next several years.”