US Government Backs Intel with $20 Billion for Domestic Chip Production
President Joe Biden announced nearly $20 billion in grants and loans awarded to Intel, marking the largest government subsidy for chip production in the U.S.
The agreement includes $8.5 billion in grants and up to $11 billion in loans for Intel's projects in Arizona.
Funding aims to support the construction of two new factories and the upgrade of an existing one, enhancing advanced chip manufacturing in the U.S.
Biden highlighted the importance of domestic chip production, especially in light of the semiconductor shortage exacerbated by the pandemic.
He criticized past policies of outsourcing jobs and stressed manufacturing American-invented products domestically.
Commerce Secretary Gina Raimondo described the investment as one of the largest in U.S. semiconductor history.
The goal is to increase the U.S. share of advanced chip production from 0% to 20% by 2030, aiming to bolster national security and economic resilience.
The investment in Intel is a critical part of the 2022 CHIPS and Science Act, which plans to spend $52.7 billion to enhance domestic semiconductor production.
Lawmakers have expressed worries about the risks of depending heavily on chips produced in Taiwan, especially considering China's territorial claims.