Biden announces major semiconductor deal with Intel to invest in four states

President Biden on Thursday will tout an agreement with Intel that will provide up to $8.5 billion to ramp up semiconductor manufacturing and expand the company’s operations in four states, the latest big deal from the bipartisan CHIPS/Science Act. It becomes an investment.

Mr. Biden is scheduled to travel to Chandler, Arizona, and visit Intel’s campus to promote the preliminary agreement. The agreement includes $11 billion in financing under the CHIP and Science Act and millions of dollars to support Intel’s semiconductor and construction workforce development.

The money will help build and expand intelligence facilities in Arizona, Ohio, New Mexico and Oregon, creating nearly 30,000 jobs, White House officials said.

“No one cares more about revitalizing American manufacturing than President Biden,” Commerce Secretary Gina Raimondo said in a statement. “Today’s announcement is a major step toward securing America’s manufacturing leadership in the 21st century.” said. “This announcement is the culmination of President Biden’s years of commitment and bipartisan efforts in Congress to ensure that the cutting-edge chips we need to ensure our economy and national security are made in the United States. .”

Funds will be used in four separate locations. The move will help build two advanced logic manufacturing facilities and modernize one existing facility in Chandler, increasing Intel’s cutting-edge semiconductor manufacturing capabilities, the White House said.

It will also allow for the construction of two sites in New Albany, Ohio, the modernization of two manufacturing sites in Rio Rancho, New Mexico, into advanced packaging facilities, and the expansion and modernization of a facility in Hillsboro, Oregon.

Intel’s announcement marks the fourth preliminary agreement the administration has made with companies through the CHIPS and Science Act, which Biden signed into law in 2022.

Biden has repeatedly emphasized the importance of chips and scientific law, citing the widespread use of microchips in everyday technology such as phones, cars and home appliances. Officials said the law is critical to ramping up domestic chip production to reduce America’s dependence on overseas supply chains.

In February, the Biden administration announced a tentative agreement to provide New York-based GlobalFoundries with $1.5 billion in funding to boost domestic production of semiconductor chips.

The Biden administration had previously reached an agreement with BAE Systems to provide $35 million in funding for the company’s defense projects through legislation. And in January, the administration announced $162 million in funding to expand production in Oregon and Colorado.