
In a monumental development, the United States Commerce Department has approved an astounding investment of $19.5 billion in Intel, aimed at constructing and modernizing its semiconductor plants in four states across the country. This groundbreaking agreement, the largest of its kind in the history of US chip manufacturing, consists of $8.5 billion in direct funding, along with potential loans totaling up to $11 billion. The primary objective of this investment is to expedite the production of state-of-the-art logic chips, which are crucial for advanced technologies like artificial intelligence and military systems.
During his visit to Intel’s facilities in Arizona, President Joe Biden hailed this “historic agreement” as a significant step towards “securing America’s future.” He emphasized the importance of geographically diverse and resilient supply chains within the nation. Furthermore, he predicted that by the end of the decade, approximately 20% of the world’s leading-edge chips will be manufactured in the United States.
President Biden took the opportunity to criticize his predecessor, Donald Trump, and his “allies” for their lack of support for the Chips and Science Act. This legislation, enacted by Biden in 2022 with a budget allocation of $50 billion, aims to revive domestic semiconductor production. Currently, less than 10% of global chips are produced in the United States, with none of them being among the most advanced.
Pat Gelsinger, the CEO of Intel, echoed President Biden’s concerns and asserted that “vulnerable global supply chains pose a risk not only to our economy but also to our national security.” He emphasized that “America will not relinquish its leadership to our competitors.” In Arizona, Intel is in the process of constructing two new chip factories and enhancing an existing one, with plans to implement its latest 2-nanometer and 1.8-nanometer fabrication technologies by 2025.
Over the next five years, Intel intends to invest over $100 billion to bolster production capacity in Arizona, New Mexico, Ohio, and Oregon. This substantial investment is expected to create nearly 10,000 manufacturing jobs. The United States Commerce Secretary, Gina Raimondo, praised the funding for Intel as a “significant leap towards securing America’s dominance in 21st-century manufacturing.” Gelsinger added that with federal support, “Intel and the United States will continue to lead the way in the AI era.”