Intel has $8.5 billion in funding from the Biden administration for semiconductor manufacturing in the United States. The important subsidy is part of the CHIPS Act plan launched in March last year and strongly supported by the White House to make the US a leader in semiconductor production, while reducing dependence on other countries, China in the first place. “[This investment] will transform the semiconductor industry,” the president said at Intel’s Chandler, Arizona, campus. “Where the hell is it written that we won’t go back to being the manufacturing capital of the world?”
In addition to the $8.5 billion that will be used to build plants in Arizona, Ohio, New Mexico and Oregon, there will be:
$11 billion in loans
tax credits to cover up to 25% of the expenses incurred for projects planned for the next five years with a total value of more than $100 billion
With this aggressive plan, Intel will be able to produce advanced semiconductors especially for smartphones, artificial intelligence, and hardware for military purposes. By 2030, the U.S. will produce 20% of the world’s most advanced chips, capable of “fueling our economic and national security” (Gina Raimondo, Secretary of Commerce in the Biden administration).
Arizona: 2 new factories + transformation of existing facility
Ohio: 1 new plant
New Mexico: Transformation of 2 existing factories into advanced assembly site
Oregon: Expansion of Existing Hub
Despite the huge investment, Intel CEO Pat Gelsinger says this might not be enough to maintain leadership over time:
“It doesn’t end up in a 3 to 5 year program. I think we’re going to need a CHIPS 2 to complete this job – Pat Gelsinger, CEO of Intel”