Intel Scores $8.5B In CHIPS Act Funds From Biden Admin To Advance US Semiconductor Tech

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Since Pat Gelsinger took the helm of Intel, the company has shed a number of extraneous projects, focused on its core competencies, and completely revamped its manufacturing strategy. In fact, Gelsinger has been adamant about Intel regaining its process leadership position, and famously announced plans to launch five nodes in four years. The company recently spun up its Intel Foundry business as well, with the goal of being the second largest advanced chip foundry by 2030.

Biden Admin Grants $8.5B Of Chips Act Funding To Intel

To that end, Gelsinger has announced significant investments, to the tune of roughly $100 billion in the U.S. over the next five years, to expand chip manufacturing capacity. Gelsinger has also worked with the Biden administration (along with other industry leaders) on the CHIPS and Science Act, which is designed to spur growth and innovation in a number of key markets, including AI, robotics, quantum computing, biotech, and data storage, in addition to semiconductor workforce development and chip manufacturing in the U.S. The CHIPS and Science Act is a comprehensive piece of legislation that will ultimately inject upwards of $280 billion into the U.S. economy to advance and strengthen American manufacturing capabilities and supply chains, while investing in the sciences and in research and development of numerous technologies. Intel just scored roughly $8.5 billion of that funding, and plans to take advantage of potential associated tax credits, which could be worth billions as well.

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“Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor innovation,” said Intel CEO Pat Gelsinger. “AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help to ensure that Intel and the U.S. stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”

The proposed $8.5 billion in direct funding through the CHIPS and Science Act will go towards Intel’s commercial semiconductor projects in Arizona, New Mexico, Ohio, and Oregon. If you recall, Intel just broke ground on its plant expansion in Arizona and many of the company’s leading-edge enhancements are initially developed in Oregon. New Mexico is Intel’s U.S. advanced packaging site, and Ohio will be home to a new, leading-edge manufacturing facility.

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Tax Credits And Federal Loans Are Also Worth Billions

In addition to direct funding, the CHIPS and Science Act also offers up to 25% investment tax credits for capital expenses for semiconductor manufacturing and related equipment. Intel expects to benefit from a U.S. Treasury Department Investment Tax Credit of up to 25% on more than $100 billion in qualified investments, which could ultimately be worth more than the direct funding. Intel is also eligible for cheap, federal loans of up to $11 billion.

According to Intel, it expects its investments will create more than 10,000 company jobs and nearly 20,000 construction jobs in the coming years, and to support more than 50,000 indirect jobs with suppliers and adjacent industries.

If you'd like to learn more, Intel will be hosting a livestream event from Intel’s Arizona Ocotillo campus today (Wednesday, 3/20) at 10:15 A.M. PT / 1:15 P.M. ET.