The U.S. Department of Commerce has granted Intel a sum of $8.5 billion through the Investing in America Agenda for initiating projects in Arizona, New Mexico, Ohio, and Oregon. This investment, facilitated under the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, aims to fortify the supply chain of the U.S. Semiconductor Industry as the nation seeks to broaden its domestic market.
Intel has plans to invest over $100 billion in the United States within the next five years as it broadens its semiconductor production. According to a press release by the Department of Commerce, these investments are projected to directly create over 30,000 jobs through manufacturing and construction opportunities. Of this investment, $50 million has been earmarked to aid in developing the company's semiconductor workforce.
In Chandler, Arizona, two new factories will be built while an existing one will undergo modernization. Intel is collaborating with Maricopa County Community Colleges and has provided instructors for students aiming to widen semiconductor technician opportunities. The investment in Chandler is anticipated to support 3,000 manufacturing jobs and 6,000 construction jobs. Furthermore, technology development facilities in Oregon will also be modernized through this investment. In 2022 alone, Intel invested over $4 billion in Oregon for developing new innovations.
"Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor manufacturing innovation," stated Intel CEO Pat Gelsinger. "AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help 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." Apart from the proposed funding of $8.5 billion, additional provisions under the CHIPS Act are making up to $11 billion in loans available to Intel for developmental purposes. A tax credit from the Department of the Treasury will protect Intel from paying up to 25% of taxes on capital expenditures.
