Intel Secures Nearly $8 Billion in CHIPS Act Funding to Boost US Semiconductor Production
Intel Corporation has been awarded 7.86 billion in funding under the U.S. CHIPS and Science Act, a major step towards bolstering domestic semiconductor manufacturing and reducing reliance on overseas production.
The funding, announced by Intel and the Biden-Harris Administration, will support Intel’s ambitious plans to expand its chipmaking and advanced packaging capacity across its sites in Arizona, New Mexico, Ohio, and Oregon. This includes the production of leading-edge chips using Intel’s latest process technologies, such as Intel 3 and Intel 18A.
“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,” said Pat Gelsinger, CEO of Intel. “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.“
This significant investment aligns with the CHIPS Act’s goal of revitalizing the U.S. semiconductor industry and strengthening its supply chain. Intel has committed to investing over $100 billion in its U.S. operations, creating thousands of jobs and fostering innovation in the process.
“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,” said U.S. Secretary of Commerce Gina Raimondo.
The funding will also support Intel’s efforts to develop a skilled semiconductor workforce through education, training, and apprenticeship programs. Additionally, a portion of the funding will be used to increase childcare availability near Intel’s facilities, supporting working families and promoting diversity in the industry.
This landmark investment marks a significant step towards securing a more resilient and advanced domestic semiconductor manufacturing sector in the United States.
Earlier rumors suggested that Qualcomm’s interest in acquiring Intel had cooled, primarily due to the complex financial, regulatory, and operational issues involved. It is speculated that Qualcomm might ultimately opt to acquire a stake in Intel rather than pursuing a full acquisition.
For the United States, Intel has effectively become “too big to fail.” Beyond the $7.86 billion funding provided, it is likely that the U.S. government would step in with further assistance should Intel face additional challenges in the future.
