The White House said Intel Corporation Received up to $8.5 billion in CHIPS Act funding, as the Biden administration ramps up efforts to bring semiconductor manufacturing to US soil.
Intel could receive an additional $11 billion in loans from the CHIPS and Science Act, which passed in 2022. President Joe Biden will announce the awards in Arizona on Wednesday.
U.S. Commerce Secretary Gina Raimondo said in a call with reporters that the money will help “leading made-in-the-America semiconductors” keep “America in the driver's seat of innovation.” Intel and the White House said their agreement was non-binding, preliminary and could change.
Intel has long been a powerhouse of the U.S. semiconductor maker, developing the chips that power many of the world's personal computers and data center servers. However, the company's revenues have exceeded Nvidiawhich leads the artificial intelligence chip market, has been surpassed by its competitor in terms of market value AMD And a mobile phone chip maker Qualcomm.
Even at its decline compared to its peers, Intel has a unique position in the industry because it runs chip factories, in addition to designing processors. AMD and Nvidia are not superstitious, which means they design the chip, then send the computer files and personnel to Taiwan. TSMC To manufacture the device.
TSMC has taken the lead in semiconductor manufacturing in recent years, so virtually all of the world's fastest processors are manufactured in Taiwan.
That's the main reason Intel has long been expected to be one of the biggest beneficiaries of the CHIPS (Creating Beneficial Incentives for Semiconductor Production) Act, which targeted releasing nearly $53 billion in incentives for domestic chip technology. The main motivation behind the CHIPS Act was to encourage companies to build factories on US soil to prevent supply disruptions in the event of a Chinese invasion of Taiwan.
Intel said it will spend CHIPS Act money on factories and research centers in Arizona, Ohio, New Mexico and Oregon. The company previously announced plans to spend $100 billion on US programs and facilities. Intel announced a plan to catch up with advanced manufacturing by 2026.
Intel's Ohio facility will cost more than $20 billion, and Intel said it is expected to begin production in 2027 or 2028. Intel is also expanding manufacturing operations in Arizona and New Mexico. Intel says the projects will create jobs for 20,000 people in the construction sector and 10,000 people in chip manufacturing.
The Ohio plant will make AI chips for Intel, as well as potentially making AI chips for other semiconductor companies, Intel CEO Pat Gelsinger said on a call with reporters.
“Drive through the Ohio location,” Gelsinger said. “There are a large number of cranes and concrete work trucks building what we believe will become the premier manufacturing site, at scale, especially for AI chips in America.”
GlobalFoundriesMicrochip and BAE Systems have already received money from the CHIPS Act, according to the Semiconductor Industry Association. TSMC is expected to receive CHIPS Act funds to build a plant in Arizona for which it will be used apple And AMD chips.
