The Biden-Harris Administration has finalized a $7.86 billion funding award to Intel under the US CHIPS Act. This supports the company’s plans to invest over $100 billion in expanding American semiconductor manufacturing and technology leadership. This direct funding is in addition to a $3 billion contract awarded to Intel for the Secure Enclave program, designed to expand trusted manufacturing of leading-edge semiconductors for the US government.
- The U.S. Department of Commerce has awarded Intel up to $7.86 billion in direct funding through the U.S. CHIPS and Science Act to advance Intel’s commercial semiconductor manufacturing and advanced packaging projects in Arizona, New Mexico, Ohio and Oregon.
- This direct funding is in addition to the $3 billion contract awarded to Intel for the Secure Enclave program that is designed to expand trusted manufacturing of leading-edge semiconductors for the U.S. government.
- Today’s award, coupled with a 25% investment tax credit, will support Intel’s plans to invest more than $100 billion in the U.S.
- As previously announced, Intel’s planned U.S. investments, including projects beyond those supported by CHIPS, support more than 10,000 company jobs, nearly 20,000 construction jobs, and more than 50,000 indirect jobs with suppliers and supporting industries.
The award will support Intel’s commercial semiconductor manufacturing and advanced packaging projects at its Arizona, New Mexico, Ohio, and Oregon sites. According to Pat Gelsinger, Intel’s CEO, this investment demonstrates the US government’s confidence in Intel’s essential role in building a resilient, trusted semiconductor supply chain on domestic soil. US Secretary of Commerce Gina Raimondo praised the partnership, stating that it will help strengthen America’s position as a leader in semiconductor manufacturing and innovation.
The historic investment of $3 billion in Intel’s semiconductor manufacturing and technology capabilities is expected to have far-reaching impacts on the US economy and national security. The funding will support thousands of jobs, strengthen US supply chains, foster US-based R&D, and help ensure American leadership in cutting-edge semiconductor manufacturing.
Intel’s investments in Arizona, New Mexico, Ohio, and Oregon will create a robust advanced chip development and production ecosystem. The company’s commitment to workforce development, including education, training, and benefits programs, is critical for creating a skilled workforce to support industry growth.
The CHIPS Act funding will also enable Intel to accelerate its process technology leadership, with the launch of Intel 18A in 2025. This will have significant implications for the company’s customers, including Amazon Web Services, which has committed to a multiyear, multibillion-dollar partnership with Intel.
Furthermore, Intel’s involvement in the Secure Enclave program and its relationships with the US Department of Defense through RAMP-C and SHIP programs demonstrate its commitment to supporting national security interests.
Intel’s long-standing investment in the American workforce includes a $100 million investment in 2022 to expand semiconductor education, research, and workforce training opportunities. The company’s plans to support childcare availability near its facilities and increase the participation of women and economically disadvantaged individuals in the construction workforce are also noteworthy.
Overall, this funding announcement marks a significant milestone in revitalizing the US semiconductor industry, with Intel playing a critical role in driving innovation, job creation, and national security interests.
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