Biden-Harris Admin awards Intel $7.86B for US semiconductor expansion
The Biden-Harris Administration and Intel Corporation have finalized a $7.86 billion funding award from the US Department of Commerce under the U.S. CHIPS and Science Act, said a post by the US Commerce Department on X (formerly Twitter).
#NEWS: Today, the Biden-Harris Administration announced that the U.S. Department of Commerce awarded @Intel Corporation up to $7.865 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. https://t.co/Zkaki7E4iM pic.twitter.com/nv6dJdRBWd
— U.S. Commerce Dept. (@CommerceGov) November 26, 2024
This funding will support Intel’s ambitious $100 billion investment plans to expand semiconductor manufacturing and technology leadership in the United States. The award will advance Intel’s critical semiconductor manufacturing and advanced packaging projects at its sites in Oregon, New Mexico, Arizona and Ohio. Additionally, Intel plans to claim the Investment Tax Credit by the US Treasury Department, with the tax credit being expected to be up to 25% of qualified investments exceeding $100 billion.
Intel CEO Pat Gelsinger said on the occasion, “With Intel 3 already in high-volume production and Intel 18A set to follow next year, leading-edge semiconductors are once again being made on American soil.”
He added, “Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security. Intel is deeply committed to advancing these shared priorities as we further expand our U.S. operations over the next several years.”
The announcement appears to be underscoring the US government’s confidence in Intel’s pivotal role in domestically building a trusted, resilient semiconductor supply chain. Since the enactment of the CHIPS and Science Act more than two years ago, Intel has committed to investing over $100 billion in the United States to broaden chipmaking and advanced packaging capacities and capabilities that are key for economic and national security. These investments are expected to create tens of thousands of jobs, boost the country’s supply chains, nurture domestic R&D and ascertain USA’s leadership in state-of-the-art semiconductor manufacturing and technology.
US Secretary of Commerce Gina Raimondo said, “The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and Intel is expected to play an important role in the revitalization of the U.S. semiconductor industry.”
She added, “Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award is catalyzing Intel to make one of the largest investments in semiconductor manufacturing in U.S. history.”
The award was finalized following the earlier signed preliminary memorandum of terms and Commerce’s due diligence completion, along with the announced investment tax credit. The final award amount is less than the proposed preliminary figure because Congress mandated that CHIPS funding be used to pay for the $3 billion Secure Enclave program.
The CHIPS Act funding will directly bolster Intel’s investments at facilities in Arizona (Silicon Desert), New Mexico (Silicon Mesa), Ohio (Silicon Heartland) and Oregon (Silicon Forest), where the company creates some of the world’s most advanced chips and semiconductor packaging technologies. Founded in the US, Intel has been a leader in global semiconductor manufacturing and R&D for over 50 years, employing around 45,000 people nationwide.
Intel is approaching the completion of an unprecedented rate of semiconductor node development to reclaim its leadership in process technology. The company’s fifth process node in four years, Intel 18A, is slated for launch in 2025 and is steadily gaining interest from customers. Additionally, Intel is finalizing a significant multiyear, multibillion-dollar agreement with Amazon Web Services to extend their partnership to include the development of a new custom Intel® Xeon® 6 chip on Intel 3 and an innovative AI fabric chip on Intel 18A.
The chip giant was awarded a major manufacturing contract in September 2024, valued at up to $3 billion, for the Secure Enclave program, which is designed to advance the production of advanced semiconductors for the US government and leverages Intel’s established partnership with the US Department of Defense through the State-of-the-Art Heterogeneous Integrated Packaging (SHIP) and the Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) programs.
Intel recently achieved significant milestones in advanced semiconductor manufacturing by installing an additional High Numerical Aperture (High NA) tool at its Hillsboro, Oregon, R&D site and completing the assembly of the industry’s first commercial High NA Extreme Ultraviolet (EUV) lithography scanner. These advancements position Intel to lead the next wave of innovations in chip manufacturing.
In addition to its investments in manufacturing and technology, Intel has a long tradition of supporting the US workforce through education, training and benefits programs essential for future job creation. For instance, in 2022, the silicon innovator pledged $100 million to promote semiconductor education, research and workforce training opportunities across the United States.
Intel has allocated $65 million from its CHIPS award to create a more proficient semiconductor workforce. This sum includes $56 million to educate and train students and faculty across all levels of education. This effort involves new initiatives such as Intel’s US registered apprenticeship program for technicians in manufacturing facilities.
Furthermore, Intel has set aside $5 million from the workforce award to expand childcare availability near its facilities. This initiative aligns with Intel’s recently unveiled plans to expand childcare benefits and introduce new programs aimed at supporting working families. The rest of the $4 million from the $65 million fund will back Intel’s involvement in the CHIPS Women in Construction Framework. Intel voluntarily committed to this framework this year to grow the construction workforce by increasing the participation of women and economically disadvantaged individuals.
Intel is also teaming up with the Midwest Microelectronics Consortium (MMEC), whose members get financing for five technology development projects within the Microelectronics Commons initiative created under the CHIPS Act. In order to further US-based microelectronic technology development for the purpose of providing solutions to bolster the American supply chain, the projects are to involve over 30 MMEC members who will represent companies from industry, academia and government stakeholders.
Featured image is a September 2024 photo showing a powerful crane on the Intel Ohio One construction site in Licking County, Ohio. Students at nearby Johnstown Monroe Intermediate School named the powerful crane “Ms. Armstrong,” paying homage to Ohio’s history in innovation, aviation and space. Standing more than twice as tall as the Statue of Liberty, the crane can lift 5.5 million pounds. (Credit: Intel Corporation)
