Intel received a record $8.5 billion investment under the CHIPS Act to expand manufacturing in the U.S.

Intel, the tech giant, is poised to receive a monumental boost from the U.S. government through the CHIPS and Science Act. A tentative agreement inked with the Department of Commerce outlines Intel’s potential to access up to a staggering $8.5 billion in direct funding. This monumental injection of capital is earmarked to bolster the chipmaker’s U.S. manufacturing capabilities, specifically targeting the expansion of fabrication facilities (fabs) for advanced semiconductor chips utilized in cutting-edge applications like artificial intelligence.

The public investment is projected to bolster Intel’s initiatives across four states, with plans encompassing the construction of two state-of-the-art logic chip plants and the modernization of existing facilities.Key sites slated for development include Chandler, Arizona, and New Albany, Ohio. Moreover, Intel aims to modernize existing plants in Rio Rancho, New Mexico, and enhance capacity in Hillsboro, Oregon. Notably, this $8.5 billion government funding supplements Intel’s hefty $100 billion commitment to U.S. manufacturing over the subsequent five years.

Under the agreement, Intel retains the option to borrow up to an additional $11 billion from the U.S. government if further financial support is required.This groundbreaking accord underscores the Biden administration’s commitment to fostering domestic semiconductor research and manufacturing, aiming to reduce reliance on Chinese suppliers. The CHIPS and Science Act, enacted in 2022, marks the administration’s fourth investment in the initiative and represents the largest investment thus far.

Combining Intel’s substantial investment with government funding, this initiative stands as one of the largest investments announced in U.S. semiconductor manufacturing.Previously, in February, the government allocated $1.5 billion in CHIPS Act funding to GlobalFoundries, a division of AMD, to facilitate the construction of new fabs.

Intel’s ambitious projects across various U.S. regions are expected to generate significant employment opportunities, creating 20,000 construction jobs and 10,000 manufacturing roles.Recognizing the need to upskill the local workforce, the government pledges $50 million for training and development initiatives. However, these terms are provisional, subject to potential adjustments by the Commerce Department following due diligence assessments and subsequent negotiations.

Source: Engadget