CHIPS Investment of up to $7.865 Billion Reinforces U.S. Supply Chain Security and Supports Multiple Projects in Arizona, New Mexico, Ohio, and Oregon
Today, the Biden-Harris Administration announced that the U.S. Department of Commerce awarded Intel Corporation up to $7.865 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. The award follows the previously signed preliminary memorandum of terms, announced on March 20, 2024, and the completion of the Department’s due diligence. The award will directly support Intel’s expected U.S. investment of nearly $90 billion by the end of the decade, which is part of the company’s overall $100+ billion expansion plan. The Department will disburse the funds based on Intel’s completion of project milestones.
“The CHIPS for America program will supercharge American innovation and technology and make our country more secure – and Intel is playing an important role in the revitalization of the U.S. semiconductor industry through its unprecedented investments across Arizona, New Mexico, Ohio, and Oregon,” said U.S. Secretary of Commerce Gina Raimondo. “Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award is enabling Intel to drive one of the most significant semiconductor manufacturing expansions in U.S. history.”
“Today’s award marks another key step in implementing President Biden’s CHIPS and Science Act and the Investing in America agenda to reshore manufacturing, create thousands of good-paying jobs, and strengthen our economy,” said White House Deputy Chief of Staff Natalie Quillian. “Intel’s investments across the country demonstrate once again how President Biden’s Investing in America agenda is delivering for the American people.”
Leading-edge chips power the most sophisticated technology on the planet, including developing AI and building critical military capabilities. Intel’s process technologies, such as Intel 18A and advanced packaging technologies, combined with its foundry services, would strengthen the domestic supply of these advanced chips. The Department’s investment in Intel would support both the fabrication and advanced packaging of leading-edge chips through projects in Arizona, New Mexico, Ohio, and Oregon. As previously announced and with the Department's support, Intel's overall expansion plan is estimated to support approximately 10,000 manufacturing jobs and 20,000 construction jobs across all four states.
“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. Intel is deeply committed to advancing these shared priorities as we further expand our U.S. operations over the next several years.”
For more information about Intel’s award, please visit the CHIPS for America website.
As stated in the CHIPS Notice of Funding Opportunity for Commercial Fabrication Facilities, CHIPS for America will distribute direct funding to recipients for capital expenditures based on the completion of construction, technology, production, and commercial milestones. The program will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions.
About CHIPS for America
CHIPS for America has awarded over $19 billion of the over $36 billion in proposed incentives funding allocated to date. These announcements across 20 states are expected to create over 125,000 jobs. Since the beginning of the Biden-Harris Administration, semiconductor and electronics companies have announced over $450 billion in private investments, catalyzed in large part by public investment. CHIPS for America is part of President Biden and Vice President Harris’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development Office, responsible for R&D programs, that both sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. Visit chips.gov to learn more.
