The U.S. Department of Commerce has confirmed a $7.865 billion award to Intel under the U.S. CHIPS and Science Act, aimed at boosting domestic semiconductor production. The funding will support Intel’s manufacturing and advanced packaging projects in facilities across Arizona, New Mexico, Ohio, and Oregon.
This investment is part of Intel’s broader efforts to transition to a “foundry” model, where it will manufacture chips designed by other companies, like AWS.
Intel CEO Pat Gelsinger expressed that the funding, supported by bipartisan efforts, is crucial for long-term economic growth and national security.
The award, although less than the initially expected $8.5 billion, comes as Intel continues to invest heavily in U.S. operations, including $20 billion for new fabrication plants in Arizona and $28 billion for plants in Ohio.
Despite some delays in global projects, Intel’s U.S. investments are central to reducing reliance on foreign chip production, a priority heightened by supply chain challenges during the pandemic.
Alongside the $7.865 billion, Intel will also receive a 25% investment tax credit and has secured a $3 billion contract for semiconductor manufacturing for the U.S. government under a national security initiative.
This further supports the Biden administration’s goal to reshore manufacturing and create jobs, reinforcing its “Investing in America” agenda.
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