Intel Secures $7.86 Billion in Funding from Biden-Harris Administration’s CHIPS Act

Intel and the Biden Administration Team Up for Semiconductor Manufacturing

Today, Intel Corporation and the Biden-Harris Administration are stirring up the tech world. They’ve just announced a significant agreement with the U.S. Department of Commerce that could see Intel receiving up to $7.86 billion in direct funding. This money is part of the U.S. CHIPS and Science Act, aimed at bolstering domestic semiconductor manufacturing. So, what does this mean for the future of technology in America?

This funding will support Intel’s ambitious plans for semiconductor manufacturing and advanced packaging projects across several states—namely Arizona, New Mexico, Ohio, and Oregon. Intel is also eyeing the U.S. Treasury Department’s Investment Tax Credit, which could give them a boost of up to 25% on qualified investments exceeding $100 billion. That’s a lot of chips!

A New Era for American Semiconductor Production

Pat Gelsinger, Intel’s CEO, shared some exciting news: “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.” This isn’t just about chips; it’s about restoring America’s position as a leader in technology and manufacturing. Gelsinger emphasized that this bipartisan support is crucial for long-term economic growth and national security.

But why does this matter? Well, the semiconductor industry is the backbone of modern technology, powering everything from smartphones to advanced AI systems. With this new funding, Intel is poised to play a pivotal role in building a resilient and trusted semiconductor supply chain right here in the U.S.

The CHIPS for America Program: A Game Changer

U.S. Secretary of Commerce Gina Raimondo highlighted the significance of this investment, stating, “The CHIPS for America program will supercharge American technology and innovation and make our country more secure.” This award isn’t just a financial boost; it’s a catalyst for one of the largest investments in semiconductor manufacturing in U.S. history.

It’s worth noting that this award comes on the heels of a preliminary memorandum of terms and the completion of due diligence by the Commerce Department. The final amount is slightly less than initially proposed due to some congressional requirements, but it still represents a monumental step forward for the industry.

Investing in U.S. Manufacturing and R&D

The funding from the CHIPS Act is set to directly support Intel’s investments at sites where they’re already developing some of the most advanced chips and semiconductor packaging technologies. Here’s a quick rundown of the locations:

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Arizona

: Dubbed the Silicon Desert, it’s Intel’s U.S. manufacturing powerhouse.
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New Mexico

: Known as the Silicon Mesa, this site focuses on advanced packaging.
–

Ohio

: The Silicon Heartland, where Intel is establishing a new leading-edge manufacturing site.
–

Oregon

: The Silicon Forest, the heart of Intel’s semiconductor R&D.

Intel has been a trailblazer in the semiconductor industry for over 50 years, employing around 45,000 people in the U.S. alone. With these investments, they’re not just creating jobs; they’re fostering innovation that will drive the tech industry forward.

Pushing the Envelope on Technology

Intel is on a roll, nearing the completion of a historic pace in semiconductor node development. With Intel 18A, the company’s fifth process node in just four years, set to launch in 2025, they’re gaining traction with customers like Amazon Web Services. This partnership is expanding to include a new custom Intel Xeon 6 chip and an AI fabric chip on Intel 18A.

And if that’s not enough, Intel recently secured a manufacturing contract worth up to $3 billion for the Secure Enclave program, which is aimed at enhancing trusted semiconductor manufacturing for the U.S. government. This builds on their existing relationship with the Department of Defense and underscores the importance of national security in this technological landscape.

Investing in the Workforce of Tomorrow

It’s not just about manufacturing; Intel is also investing heavily in the American workforce. In 2022, they announced a whopping $100 million investment to expand semiconductor education and workforce training opportunities nationwide. As part of the CHIPS award, they’re allocating $65 million specifically to create a more skilled semiconductor workforce.

This includes plans to train students and faculty at all education levels, along with a new apprenticeship program for manufacturing facility technicians. Plus, they’re setting aside $5 million to improve childcare availability near Intel facilities, recognizing the importance of supporting working families.

Collaborating for a Stronger Future

Lastly, Intel is teaming up with the Midwest Microelectronics Consortium (MMEC) on several technology development projects under the Microelectronics Commons initiative established by the CHIPS Act. This collaboration aims to engage over 30 members from industry, academia, and government to advance domestic microelectronic technology and strengthen the U.S. supply chain.

So, what’s the takeaway here? Intel’s partnership with the U.S. government is set to reshape the semiconductor landscape, creating jobs, fostering innovation, and ensuring that America remains at the forefront of technology. It’s an exciting time for the industry, and we can’t wait to see what comes next!

Background Information

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About Intel:

Intel Corporation, a global technology leader, is for its semiconductor innovations that power computing and communication devices worldwide. As a pioneer in microprocessor technology, Intel has left an indelible mark on the evolution of computing with its processors that drive everything from PCs to data centers and beyond. With a history of advancements, Intel's relentless pursuit of innovation continues to shape the digital landscape, offering solutions that empower businesses and individuals to achieve new levels of productivity and connectivity.

  

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Technology Explained

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Xeon: The Intel Xeon processor is a powerful and reliable processor used in many computer systems. It is a multi-core processor that is designed to handle multiple tasks simultaneously. It is used in servers, workstations, and high-end desktop computers. It is also used in many embedded systems, such as routers and switches. The Xeon processor is known for its high performance and scalability, making it a popular choice for many computer applications. It is also used in many cloud computing applications, as it is capable of handling large amounts of data and providing high levels of performance. The Xeon processor is also used in many scientific and engineering applications, as it is capable of handling complex calculations and simulations.

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