US government announces $3 trillion funding for Intel

The US government has announced a $8.5 billion subsidy and up to $11 billion loan to Intel, which plans to use the subsidy to expand its semiconductor manufacturing capacity in the US.

Intel and Biden Admin Announce up to $8.5 Billion in Direct Funding...
https://www.intel.com/content/www/us/en/newsroom/news/us-chips-act-intel-direct-funding.html

Biden-Harris Administration Announces Preliminary Terms with Intel to Support Investment in US Semiconductor Technology Leadership and Create Tens of Thousands of Jobs | US Department of Commerce
https://www.commerce.gov/news/press-releases/2024/03/biden-harris-administration-announces-preliminary-terms-intel-support

Since I took office, companies have announced over $240 billion in investments to bring chip manufacturing back home.

That's the CHIPS Act working.

And today, we'll announce a preliminary agreement with Intel for up to $8.5 billion in CHIPS funding, mobilizing $100 billion.

— President Biden (@POTUS) March 20, 2024

In the United States , the Creating Helpful Incentives to Produce Semiconductors and Science Act (CHIPS Act) was enacted in August 2022, which includes a provision to allocate approximately $52.7 billion (approximately 7.93 trillion yen) over the next five years to strengthen semiconductor manufacturing capacity in the United States. The US government's investment in Intel is based on the CHIPS Act.

Intel also announced plans to invest $100 billion over five years to expand chip manufacturing capacity in Arizona, New Mexico, Ohio, and Oregon. Intel plans to use subsidies and loans from the U.S. government to expand chip manufacturing capacity in the United States.

Intel is filling supply chain gaps critical to the US economy and national security. #CHIPSAct funding supports Intel's plan to invest $100 billion in the US over five years to expand chipmaking capacity and capabilities in Arizona, New Mexico, Ohio and Oregon. pic.twitter.com/f0rgyPAxaU

— Intel News (@intelnews) March 20, 2024

Intel also said that the CHIPS Act funding and its investment will create 10,000 jobs within Intel, 20,000 jobs in the factory construction, and 50,000 jobs in the supply chain, highlighting the magnitude of the impact it will have on the U.S. economy.

Intel's investments, coupled with the #CHIPSAct award, are expected to create and support:

10,000 Intel jobs,

20,000 construction jobs,

50,000 indirect jobs with suppliers and supporting industries.

Read the thread to learn more. pic.twitter.com/1BuGJroJeX

— Intel News (@intelnews) March 20, 2024

'We invented the semiconductor, but over time we've moved our semiconductor manufacturing capacity overseas. I'm determined to bring semiconductor manufacturing capacity back to America. That's what we're going to do with the CHIPS Act,' President Joe Biden said during a visit to the Intel factory site in Arizona to announce the funding.

Semiconductors are the tiny computer chips smaller than a fingertip that power our everyday lives.

We invented them, but over time we moved manufacturing overseas.

I came to work determined to bring their production home.

That's what our CHIPS Act does. pic.twitter.com/pKD2YMN3OX

— President Biden (@POTUS) March 21, 2024

In response to the U.S. government's funding announcement for Intel, Microsoft CEO Satya Nadella said, 'This announcement marks a major step forward in strengthening the resilience of America's semiconductor supply chain.'

Great to see this announcement today from @SecRaimondo and @Intel , which is a critical step forward in strengthening our semiconductor supply chain resilience in the US. https://t.co/CKC5QJD5mU

— Satya Nadella (@satyanadella) March 20, 2024