With nearly $20 billion allocated to Intel, the Biden administration aims to bolster the country's global microprocessor strategy. This initiative involves bringing chip production back to the United States and complementing the California-based supply chain on the continent.
The White House announced that the Commerce Department has reached a preliminary agreement with Intel under the CHIPS and Science Act. With this, the chipmaker will receive up to US$8.5 billion in direct financing and up to US$11 billion in loans.
These resources, the White House stated, will enable Intel to strengthen its microprocessor strategy in North America. This includes creating approximately 30,000 jobs and constructing and expanding the company's facilities in Arizona, Ohio, New Mexico, and Oregon.
Biden used a visit to Intel's campus in Ocotillo, Arizona, to reinforce the message he outlined in his State of the Union address regarding the government's investment agenda to create jobs in the U.S. and maintain the country's status as a leader in innovation and technology.
The joint announcement by the Biden administration and Intel comes in the context of the United States having ceased to lead the chip industry in recent years, despite being the birthplace of semiconductors.
The CHIPS Act is part of the Biden administration's efforts to reverse this trend and regain a predominant role for the US in chip production. Currently, the US accounts for less than 10% of the global total.
Through this tech policy, the government aims to position U.S.-based companies like Intel as major players in emerging technological trends. Consequently, Intel seeks to leverage the footprint it has established in this hemisphere, complementing its manufacturing and research and development efforts in the U.S., as well as in its centers in Guadalajara, Mexico, and Costa Rica.
"Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor innovation," said Intel CEO Pat Gelsinger.
The U.S. investment, led by Gina Raimondo, head of the Department of Commerce, is part of the government's commitment to take control of new industries related to artificial intelligence.
"There is no one who cares more about revitalizing American manufacturing than President Biden, and today's announcement is a massive step towards ensuring America's leadership in manufacturing for the 21st century," Raimondo said.
According to Raimondo, the government "is helping to incentivize over $100 billion in investments from Intel – marking one of the largest investments ever in U.S. semiconductor manufacturing, which will create over 30,000 good-paying jobs and ignite the next generation of innovation."
One of Intel's goals is to become the epicenter of the technology ecosystem on which AI is based. To achieve this, the company aims to integrate its operations in the Americas. Intel announced its intention to leverage the capacity of its manufacturing centers, with leadership based in Costa Rica, to provide processors for 100 million AI-powered PCs by 2025.
© 2024 Latin Times. All rights reserved. Do not reproduce without permission.
