In a significant move aimed at bolstering domestic semiconductor manufacturing, the U.S. Department of Commerce has put forth a proposal to allocate up to $8.5 billion in direct funding through the CHIPS and Science Act to support Intel’s commercial semiconductor projects across several states.
These initiatives are in alignment with Intel’s previously announced plans to inject more than $100 billion into the U.S. over a five-year period, with the goal of expanding chipmaking capacity critical to both economic prosperity and national security, and to accelerate advancements in technologies like artificial intelligence (AI).
According to 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.”
This combined effort represents one of the largest public-private investments ever made in the U.S. semiconductor industry. It is anticipated to create over 10,000 direct company jobs, nearly 20,000 construction jobs, and support more than 50,000 indirect jobs within supplier networks and supporting industries.
The announcement underscores the U.S. government’s confidence in Intel’s leadership and its commitment to expanding domestic chipmaking capabilities. It is viewed as an investment in America’s technological future, promising innovation, opportunities, and employment growth.
U.S. Secretary of Commerce Gina Raimondo expressed the significance of the agreement, stating, “With this agreement, we are helping to incentivize over $100 billion in investments from Intel – marking one of the largest investments ever in U.S. semiconductor manufacturing, which will create over 30,000 good-paying jobs and ignite the next generation of innovation.”
Under the proposed plan, Intel would also have access to federal loans of up to $11 billion. Furthermore, the company intends to leverage the U.S. Treasury Department’s Investment Tax Credit (ITC), which could potentially cover up to 25 percent of qualified investments exceeding $100 billion over five years.
Intel’s overarching strategy revolves around establishing process technology leadership, enhancing global semiconductor supply chains, and developing a world-class foundry business, all of which align with the objectives of the CHIPS Act to promote semiconductor manufacturing and technology leadership within the United States.
In addition to its financial commitments to expand manufacturing capacity, Intel is on track to deliver five semiconductor process nodes within four years, with expectations to regain process technology leadership by 2025 with Intel 18A. This reflects Intel’s commitment to advancing semiconductor technology and maintaining its competitive edge in the industry.