Intel awarded billions by US government to ramp up chip production

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Intel to receive billions in funding for semiconductor manufacturing

An aerial of Intel Headquarters Santa Clara, CA taken on July 22, 2010
(Image credit: Steve Proehl/Getty Images)

The Biden-Harris administration has announced Intel could receive up to $8.5 billion in potential direct funding to ram up domestic production of semiconductors.

The US Department of Commerce has offered Intel a non-binding preliminary memorandum of terms (PMT) to provide the funding under the CHIPS and Science act.

The CHIPS act is an incentive put forward by the Biden administration to secure the domestic production of chips, rather than relying on Taiwan’s manufacturing capabilities that could be sabotaged by China.

Billions of dollars for CHIPS

Semiconductor chips are essential for almost every electronic device, especially those involved in the latest AI technologies and cutting edge military capabilities. So having the manufacturing capabilities needed for producing chips so close to China is not the best idea. 

Intel is set to invest over $100 billion into its sites in the US, creating tens of thousands of jobs, and helping to secure the domestic manufacturing of semiconductors.

U.S. Secretary of Commerce Gina Raimondo commented on the PMT, stating that, “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.”

“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.”

“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 proposed investment would also increase employment opportunities and funding for sites in Arizona, New Mexico, Ohio and Oregon, thanks to the increased fabrication and distribution facilities. There is also the opportunity for Intel to secure loans from the $11 billion set aside in the CHIPS act for this purpose.

While the PMT is still subject to change before being agreed by both Intel and the Department of Commerce, this announcement puts the Biden administration within touching distance of completing the goals set forth in the CHIPS and Science act.

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Benedict Collins
Benedict Collins
Staff Writer (Security)

Benedict has been writing about security issues for over 7 years, first focusing on geopolitics and international relations while at the University of Buckingham. During this time he studied BA Politics with Journalism, for which he received a second-class honours (upper division),  then continuing his studies at a postgraduate level, achieving a distinction in MA Security, Intelligence and Diplomacy. Upon joining TechRadar Pro as a Staff Writer, Benedict transitioned his focus towards cybersecurity, exploring state-sponsored threat actors, malware, social engineering, and national security. Benedict is also an expert on B2B security products, including firewalls, antivirus, endpoint security, and password management.