President Biden Wednesday announced that the Department of Commerce will provide up to $8.5 billion in direct funding to Intel Corporation, along with $11 billion in loans under the CHIPS and Science Act.
The $8.5 billion will support the construction and expansion of Intel facilities in Arizona, Ohio, New Mexico, and Oregon, creating nearly 30,000 jobs and supporting tens of thousands of indirect jobs.
President Biden’s CHIPS and Science Act aims to bring semiconductor manufacturing back to America where they were invented. But today, the United States produces less than 10 percent of the world’s chips and none of the most advanced ones. Companies have announced over $240 billion in investments to bring semiconductor manufacturing back to the United States since the President took office. Semiconductors power everything from cell phones to electric vehicles, refrigerators, satellites, defense systems, and more. Semiconductor jobs are making a comeback and America aims to produce roughly 20% of the world’s leading-edge chips by the end of the decade.
The CHIPS investment will support Intel’s construction and expansion projects across four states and create nearly 30,000 jobs. In Chandler, Arizona, the funding will help construct two leading-edge logic fabs and modernize one existing fab, significantly increasing manufacturing capacity to produce Intel’s most advanced semiconductors in the United States. This investment will create over 3,000 manufacturing jobs, 7,000 construction jobs, and thousands of indirect jobs. Intel’s investment in Arizona is among the largest private sector investments in the state’s history.
In New Albany, Ohio, the funding will establish a new regional economic cluster for U.S. chipmaking with the construction of two leading-edge logic fabs. This investment will create 3,000 manufacturing jobs, 7,000 construction jobs, and an estimated 10,000 indirect jobs. Intel’s investment in Ohio is the largest private-sector investment in the state’s history.
In Rio Rancho, New Mexico, the funding will support the nearly complete modernization and transformation of two fabs into advanced packaging facilities, where chips are assembled together to boost their performance and reduce costs. When completed, these facilities will be the largest for advanced packaging in the United States. This investment will create 700 manufacturing jobs and 1,000 construction jobs.
In Hillsboro, Oregon, the funding will expand and modernize facilities to increase clean-room capacity and utilize advanced lithography equipment.
Creating Good-Paying and Union Jobs with Good Benefits Across America
White House announced five initial Workforce Hubs across the country – two of which have focused on building pipelines to good jobs in the semiconductor industry: Phoenix, Arizona, and Columbus, Ohio. And, last year, the National Science Foundation and Intel announced $100 million to expand semiconductor workforce training opportunities, education, and research across the nation.
The announcement today also includes significant funding to train and develop the local workforce, including $50 million in dedicated CHIPS funding.
Building on Historic Progress Under the CHIPS and Science Act
Today’s announcement is the fourth and largest preliminary memorandum of terms (PMT) under the CHIPS and Science Act:
In February 2024, the Biden-Harris Administration announced $1.5 billion for GlobalFoundries to support the development and expansion of facilities in Malta, NY, and Burlington, VT. In January 2024, the Administration announced $162 million for Microchip Technology Inc. to increase its production of microcontroller units and other specialty semiconductors, and to support the modernization and expansion of fabrication facilities in Colorado Springs, CO, and Gresham, OR.
In December 2023, the Administration announced $35 million for BAE Systems Electronic Systems to support the modernization of the company’s Microelectronics Center in Nashua, NH. This facility will produce chips that are essential to our national security, including for use in F-35 fighter jets.
