In “The Claman Countdown,” Intel CEO Pat Gelsinger details how $8.5 billion from CHIPS and the Science Act will be used for four projects, including a factory in Ohio.
Semiconductor giant Intel announced Wednesday that it will receive approximately $20 billion in federal grants under the CHIPS and Science Act to advance semiconductor manufacturing projects in four U.S. states.
The Commerce Department is proposing up to $8.5 billion in direct funding for semiconductor projects in Arizona, New Mexico, Ohio and Oregon. The Treasury Department also granted up to $11 billion in federal loans and provided Intel with investment tax credits (ITCs) of up to 25% on qualified investments of up to $100 billion.
The funding will support Intel’s previously announced plan to invest more than $100 billion in the U.S. over five years to expand domestic chip manufacturing capacity and other capabilities critical to the economy and national security. become. These facilities will also play a role in Intel’s efforts to produce cutting-edge technology. Artificial Intelligence (AI) Chip.
“Today is a defining moment for the United States and Intel to drive the next great chapter in semiconductor innovation,” Intel CEO Pat Gelsinger said in a press release. “AI is accelerating the digital revolution, and everything digital requires semiconductors. Support for the CHIPS Act will help Intel and the United States stay at the forefront of the AI era and build strong, sustainable semiconductors that will support our nation’s future.” It helps us make sure we build our supply chain.”
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Intel is investing in U.S. chip manufacturing after receiving a $20 billion federal grant as part of a $100 billion spending plan. (Brendan Smialowski/AFP/Getty Images)
The funding will help Intel build two new factories and modernize existing facilities in Arizona. chip manufacturing Ohio projects are experiencing delays. It will also fund a nearly completed advanced packaging facility in New Mexico and allow Intel to expand its research and development facility in Oregon.
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| INTC | Intel Corporation | 42.48 | +0.28 | +0.66% |
Gelsinger said in an interview on FOX Business Network. “Craman Countdown” Chips made in Arizona and Ohio are “the most advanced chips in the world, and when people measure them, these are chips that are less than 2 nanometers,” he said, adding that Taiwan and other semiconductor leaders are He said it is more advanced than the chips it manufactures.
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President Biden stands next to Intel CEO Pat Gelsinger (left) looking at chip wafers during a tour of Intel’s Ocotillo campus in Chandler, Arizona, on March 20, 2024. (Brendan Smialowski/AFP/Getty Images)
“We see PCs and mobile phones being used to provide network components in a variety of sectors. But AI chips are like a supercharger for the industry right now, and we are “We expect to build a lot of that. Not just for Intel chips, but for industry players as well,” Gelsinger said.
“To do that, we need cutting-edge technology to build cutting-edge AI, and that’s exactly what we’re trying to do in these facilities and across the country.”
Commerce Secretary Gina Raimondo said this is one of the largest investments ever in U.S. semiconductor manufacturing, and the Biden administration plans to increase the U.S. share of advanced chip production from 0% to 20% by 2030. He said he was thinking of raising it to %. chips method.
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An American flag is raised on the Intel Ocotillo Campus in Chandler, Arizona on March 20, 2024. (Cassidy Araiza/Bloomberg/Getty Images)
The CHIPS and Science Act was bipartisanly approved in 2022 and would provide subsidies to boost domestic chip production that would diversify the semiconductor supply chain, which is concentrated in Taiwan and China, and disputes between the two countries. The risks of
Although it never ruled Taiwan, Communist Party of China China considers it a rogue province and reserves the right to “reunify” it with mainland China through the use of military force.
of Biden administration recently awarded GlobalFoundries $1.5 billion to build a semiconductor production facility in Malta, New York, and expand existing operations there and in Burlington, Vermont.
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Awards are also scheduled to be announced. samsung in korea Taiwan’s TSMC will receive financing in the coming weeks from among the $28 billion in grants and $75 billion in loan authority provided through the CHIPS Act.
Reuters contributed to this article.
