Press Release
☷Biden Harris Administration Announces Preliminary Terms with Intel to Support Investment in U S Semiconductor Technology Leadership and Create Tens of Thousands of Jobs
U.S. Department of Commerce ( By Press Release office)
Mar 22,2024
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The Biden - Harris Administration just announced that the U . S . Department of Commerce and Intel Corporation have agreed to some preliminary terms for funding . They ' re proposing to provide up to $8 . 5 billion to support semiconductor manufacturing and create jobs . This investment would help strengthen the U . S . supply chain and bring American leadership back in this industry . Intel plans to invest over $100 billion in the United States , creating thousands of jobs in Arizona , New Mexico , Ohio , and Oregon . The Department of Commerce is also allocating $50 million to develop the company ' s workforce . Overall , this is a big step towards revitalizing American manufacturing and promoting innovation . “This announcement is the culmination of years of work by President Biden and bipartisan efforts in Congress to ensure the advanced chips we need to ensure our economic and national security are made in the United States . ” on the planet , including the development of artificial intelligence and the creation of critical military capabilities . Intel ' s process technologies , such as the Intel 18A , and advanced packaging technologies , coupled with its foundry services , will enable U . S . companies to lead the AI industry by ensuring we have a domestic supply of these cutting - edge chips . “The CHIPS for America program will lead to the development of semiconductor manufacturing . come back to the U . S . and build a vital research and development ecosystem to keep it here , ” said Under Secretary of Commerce for Standards and Technology and NIST Director Laurie E . Locascio . “The innovation driven by these proposed investments will strengthen America ' s technological and research leadership and significantly help expand our nation ' s manufacturing capacity while strengthening communities and creating good - paying jobs . ” this is the next great chapter of American semiconductor innovation , ” said Intel CEO Pat Gelsinger . “AI is accelerating the digital revolution , and everything digital requires semiconductors . Supporting the CHIPS Act will help ensure that Intel and the United States remain at the forefront of the AI era as we build a resilient and resilient semiconductor supply chain that secures our nation ' s future . ” domestic semiconductor ecosystem , strengthening Intel ' s long history in the US . The investment will also enable the company to support industry - leading U . S . semiconductor companies with advanced manufacturing in the United States . The proposed CHIPS funding will strengthen all core technical processes for advanced chip manufacturing that will occur in the United States , including proposed investments in: Chandler , Arizona: Construction of two new advanced logic manufacturing plants and upgrades to one existing plant , significantly increasing its leadership position . extreme logic power , including high - volume domestic production of Intel 18A , the company ' s most advanced chip design , which enables higher - performance cutting - edge chips through RibbonFET full - gate transistors and PowerVia reverse feed . The company will produce Intel ' s first 18A product , called Clearwater Forest , at its Arizona facilities . In 2022 , Intel partnered with Maricopa County Community Colleges to launch a first - of - its - kind Intel faculty program that will provide students with the opportunity to begin careers as semiconductor technicians . This investment will support 3 , 000 manufacturing jobs and 6 , 000 construction jobs . Intel is committed to sustainability , using renewable electricity and efficient water management in their U . S . operations . They ' re also investing in child care for their employees and expanding access to affordable care . In Rio Rancho , New Mexico , Intel is upgrading two fabs to create advanced packaging facilities , making it the largest of its kind in the U . S . They ' re also supporting engineering students and STEAM education in the area . This investment will create 700 manufacturing jobs and 1 , 000 construction jobs . CHIPS for America is a key part of President Biden ' s economic plan to invest in the United States , create jobs , and revitalize communities . It includes the CHIPS Program Office , which provides manufacturing incentives , and the CHIPS Research and Development Office , which focuses on R&D programs . Both offices are part of the National Institute of Standards and Technology ( NIST ) at the Department of Commerce . NIST plays a crucial role in administering the CHIPS for America program due to its strong relationships with U . S . industries , deep understanding of the semiconductor ecosystem , and reputation for fairness and trustworthiness . To learn more , visit https://www . chips . gov . In addition to giving Intel up to $8 . 5 billion in direct funding , the CHIPS Program Office will also offer them up to $11 billion in loans . This is part of the $75 billion in loan authority provided by the CHIPS and Science Act . Intel plans to take advantage of the Department of the Treasury ' s Investment Tax Credit , which could be up to 25% of their qualified capital expenditures . According to the first Notice of Funding Opportunity , the Department may offer Intel a provisional funding agreement after reviewing their full application . This agreement would outline the terms of the incentives award , including the amount and form of the award . However , the final terms may differ from what is being announced today , as they are subject to due diligence , negotiation , and the availability of funds . CHIPS for America has received a significant number of statements of interest , pre - applications , full applications , and small supplier concept plans . The Department is currently evaluating these applications to determine which projects will best serve U . S . national and economic security , attract private investment , and deliver economic benefits to the country . This announcement with Intel is just one of several provisional funding agreements that the Department of Commerce is expected to make under the CHIPS and Science Act throughout 2024 . Once the provisional funding agreement is signed , the Department will conduct a thorough evaluation of Intel ' s proposed projects and work with them to refine certain terms . This process includes a comprehensive due diligence and negotiation of a long - form term sheet and award documents . The National Institute of Standards and Technology ' s Bureaus and Offices are all about the CHIPS and Science Act , also known as CHIPS for America .
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