Intel will receive $8.5 billion in direct funding and $11 billion in loans from the US government to expand its capacity to make high-end chips, as it seeks to reinvent itself as a national champion in the sector and compete with the likes of Taiwan’s TSMC and South Korea’s Samsung, Financial Times reported.
US President Joe Biden will travel to Intel’s site in Chandler, Arizona, on Wednesday to announce the package, which will go towards building new facilities for the company in the south-western state, as well as Ohio, New Mexico and Oregon.
The government funding for chip manufacturing, which was passed in Congress in 2022, is part of Biden’s sweeping agenda to revitalize domestic manufacturing in areas ranging from clean energy to semiconductors and steel.
Intel has already committed to investing $100 billion in chip manufacturing over the next five years. It had said it expected to further benefit from the US Treasury tax credits that would allow it to write off up to 25 per cent of that investment.
The $8.5 billion will be distributed in tranches, subject to Intel reaching certain “milestones”, senior White House officials said. They expect the funding to lead 30,000 jobs in the chip sector.
CNBC reported the White House said Intel has been awarded up to $8.5 billion in CHIPS Act funding, as the Biden administration ramps up its efforts to bring semiconductor manufacturing to U.S. soil.
Intel could receive an additional $11 billion in loans from the CHIPS and Science Act, which was passed in 2022. The awards will be announced by President Joe Biden in Arizona on Wednesday.
The money will help “leading-edge semiconductors made in the United States” keep “America in the driver’s seat of innovation,” U.S. Secretary of Commerce, Gina Raimondo, said in a call with reporters. Intel and the White House said their agreement is nonbinding and preliminary and could change.
Intel said it would spend its CHIPS Act funds on fabs and research centers in Arizona, Ohio, New Mexico and Oregon. The company previously announced plans to spend $100 billion on U.S. programs and facilities. Intel has announced a plan to catch up in leading-edge manufacturing by 2026.
Intel’s Ohio fab will cost more than $20 billion and Intel said it is expected to start production in 2027 or 2028. Intel is also expanding manufacturing operations in Arizona and New Mexico. Intel says the projects will create jobs for 20,000 people in fab construction and 10,000 people in chip manufacturing.
In my opinion, this could potentially result in Intel hiring a lot of people who want to work for the company. This probably couldn’t have been done without the use of the CHIPS Act.
One of the problems with watching video podcasts as an alternative to conventional television is that you have typically and deliberately watch one video at a time. On longer videos it’s not as much of a problem, but with short videos that last 5 minutes or less you have to keep manually restarting the next video after the previous one has finished.
Carissa O’Brien interviews Scott from Intel GE Care Innovations. Scott demonstrates the GE Healthcare text-to-speech reader in conjunction with the Capture Station.
Jeffrey Power talks to Mike Martin of 
Available now – look for the Intel kink (the yellow branding tag) on the packaging.