Intel gets US$19.5 billion to build and improve semiconductor factories in largest chip investment in US history
- The grant and loans from the US Commerce Department are part of the Chips and Science Act of 2022, meant to bolster the supply chain and counter China
- Intel, which is increasing its manufacturing capacity in Arizona, New Mexico, Ohio and Oregon, aims to deploy its latest chip production technology by 2025
The US Commerce Department said on Wednesday that tech giant Intel would receive US$19.5 billion to construct and modernise its semiconductor factories in four US states, marking the largest investment ever in American chip manufacturing.
The multibillion-dollar deal will provide US$8.5 billion in direct funding and up to US$11 billion in loans to advance the development of cutting-edge logic chips essential to advanced technologies like artificial intelligence and military systems.
Later on Wednesday, US President Joe Biden toured parts of Intel’s facilities in Arizona – a key battleground state in recent US elections – claiming that the “landmark agreement” was “bringing the future back to America.”
“We are building a future with geographically balanced and resilient supply chains right here in America, right here in Arizona”, he said, adding a prediction that the US will produce nearly 20 percent of the world’s leading chips by the end of the decade.
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Biden tours new Taiwanese chip-making plant in Arizona, fans US-China semiconductor rivalry
Claiming the Chips and Science Act was working, a campaign-mode Biden criticised the Republican Party’s nominee in the November 4 presidential election, Donald Trump, and his “allies” for not supporting the legislation.