The Biden administration has inked a landmark deal with Intel, earmarking up to $8.5 billion in direct funding and an additional $11 billion in loans to bolster semiconductor manufacturing in the United States.
This strategic investment, facilitated through the Department of Commerce, underscores the government's commitment to revitalizing domestic chip production and strengthening national security.
President Joe Biden is set to emphasize the significance of this agreement during his visit to Intel's campus in Chandler, Ariz., one of the pivotal swing states in the upcoming presidential election. The administration's push to highlight its economic policies comes amidst ongoing efforts to bolster US manufacturing and job growth.
Commerce Secretary Gina Raimondo hailed the agreement as a pivotal step towards positioning the United States as a global leader in advanced chip production. Under the deal, the US aims to produce 20% of the world's most advanced chips by 2030, a significant increase from the current level of zero. Raimondo emphasized the critical role of leading-edge chips in driving innovation across various sectors, including artificial intelligence and defense systems.
The funding announcement comes amid heightened political tensions ahead of the 2024 presidential campaign. Biden's narrative of economic resurgence and job creation faces scrutiny, particularly in light of public skepticism surrounding his handling of inflation and other economic challenges. The administration's efforts to revitalize US manufacturing and counter competition from China have become central themes in the political discourse.
Intel's expansion projects, funded in part through the bipartisan 2022 CHIPS and Science Act, signal a major boost for US semiconductor manufacturing while reducing American companies' dependence on Chinese suppliers. The company's plans to invest $100 billion in US manufacturing over the next five years align with the government's broader strategy to promote domestic chip production. The collaborative effort between the public and private sectors underscores the importance of strategic investments in critical industries for national security and economic growth.
The agreement with Intel marks the administration's fourth and largest investment under the CHIPS Act, reflecting the government's commitment to strengthening the semiconductor industry. The funding is expected to support the construction of new fabrication facilities and the modernization of existing plants across Arizona, Ohio, New Mexico, and Oregon. Additionally, the investment is anticipated to generate 20,000 construction roles and 10,000 positions in manufacturing.
