President Biden on Thursday will tout an agreement with Intel to provide up to $8.5 billion to bolster semiconductor manufacturing and expand the company’s operations in four states, the latest major investment through the bipartisan CHIPS and Science Act.
Biden will travel to Chandler, Ariz., where he will visit an Intel campus to tout the preliminary agreement, which would also provide $11 billion in loans under the CHIPs and Science Act and include millions to help develop Intel’s semiconductor and construction workforce.
The funding would support construction and expansion of Intel facilities in Arizona, Ohio, New Mexico and Oregon and create nearly 30,000 jobs, White House officials said.
“There is no one who cares more about revitalizing American manufacturing than President Biden, and today’s announcement is a massive step towards ensuring America’s leadership in manufacturing for the 21st century,” Commerce Secretary Gina Raimondo said in a statement.
“This announcement is the culmination of years of work by President Biden and bipartisan efforts in Congress to ensure that the leading-edge chips we need to secure our economic and national security are made in the U.S.”
The money will be used for four separate locations. It will help construct two cutting-edge logic fabrication sites and modernize one existing site in Chandler, which would increase manufacturing capacity for Intel’s most advanced semiconductors, the White House said.
It would also allow for the construction of two sites in New Albany, Ohio; the modernization of two fabrication sites into advanced packaging facilities in Rio Rancho, N.M.; and the expansion and modernization of facilities in Hillsboro, Ore.
The Intel announcement marks the fourth preliminary agreement the administration has reached with a company through the CHIPS and Science Act, which Biden signed into law in 2022.
Biden has repeatedly touted the importance of the CHIPS and Science Act, citing the prevalence of microchips that are used in everyday technology such as phones, cars, home appliances and more. Officials have said the law is critical to bolster domestic production of the chips to make the U.S. less reliant on foreign supply chains.
The Biden administration announced in February a preliminary agreement to provide $1.5 billion in funding to GlobalFoundries, a New York-based company, in an effort to bolster domestic production of semiconductor chips.
The Biden administration had previously reached a deal with BAE Systems Inc. to provide $35 million in funding through the law for the company’s defense projects. And in January, the administration announced $162 million in funding to boost production in Oregon and Colorado.