Intel Secures $8.5B in US Funding for Advanced Chip Manufacturing

This investment aims to position Intel as a national champion in the semiconductor industry, allowing it to compete with industry leaders like Taiwan’s TSMC and South Korea’s Samsung.
Intel Secures $8.5b In Us Funding For Advanced Chip Manufacturing
Intel Secures 85b In Us Funding For Advanced Chip Manufacturing

The funding, part of the 2022 Chips and Science Act, will go towards building new facilities for Intel in Arizona, Ohio, New Mexico, and Oregon. This aligns with President Biden’s agenda to revitalize US manufacturing in critical sectors, including semiconductors.

The $8.5 billion grant is expected to lead to the creation of 30,000 jobs in the chip industry. Commerce Secretary Gina Raimondo stated that this funding will help the US meet its goal of ensuring 20% of the world’s most advanced chips are manufactured domestically by the end of the decade.

Intel CEO Pat Gelsinger has been a vocal advocate for reshoring chip production to the US after decades of underinvestment. The new funding will primarily support the development of Intel’s 18A manufacturing process, which represents the final step in Gelsinger’s plan to develop five such nodes in four years.

This strategic move comes as the US seeks to reduce its reliance on a small number of semiconductor factories in Asia, which Raimondo described as an untenable situation from an economic and national security perspective.

The funding announcement also coincides with President Biden’s efforts to boost his economic approval ratings ahead of the 2024 presidential election, contrasting his job creation record with that of his predecessor.

Microsoft confirmed that it will be amongst Intel’s first new 18A customers.

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