The U.S. Department of Commerce has awarded Intel a significant $7.865 billion grant under the CHIPS and Science Act, a federal initiative designed to boost domestic semiconductor manufacturing. This funding is intended to support Intel’s manufacturing and advanced packaging projects across its facilities in Arizona, New Mexico, Ohio, and Oregon. The grant is part of the U.S. government’s broader strategy to reduce reliance on foreign semiconductor production, a challenge that was made especially clear during the global supply chain disruptions caused by the COVID-19 pandemic.
Intel’s CEO, Pat Gelsinger, expressed strong optimism about the grant, emphasizing its importance for both the company and the nation’s technological and economic future. The funding aligns with Intel’s long-term goals of expanding U.S. operations and advancing technology to ensure national security. Gelsinger highlighted the bipartisan support for revitalizing American manufacturing and how these investments are crucial for restoring the country’s leadership in technology and innovation.
The CHIPS Act has been a key factor in Intel’s transition to a “foundry” model, where the company will manufacture chips for other companies, such as Amazon Web Services (AWS). This model marks a significant shift for Intel, which is also building new fabrication facilities in Arizona and Ohio. Although Intel recently delayed its $28 billion Ohio plant project due to market challenges, the company is continuing its expansion efforts with a planned total domestic investment of around $100 billion, including refurbishments and new builds.
Alongside the $7.865 billion grant, Intel will also receive a 25% investment tax credit from the U.S. Treasury Department, adding further financial support to its efforts. This initiative is a critical part of the U.S. government’s “Investing in America” agenda, which aims to strengthen the national economy, create high-paying jobs, and reinforce the nation’s technological infrastructure. With this funding, Intel is poised to continue its role as a central player in the U.S. semiconductor manufacturing landscape, contributing to both economic growth and national security.
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