Intel to secure landmark funding for domestic chip manufacturing, creating 10,000 jobs and bolstering national security
The US government and Intel are on the cusp of closing an $8.5 billion deal by the year-end, as reported by the Financial Times.
This deal is part of the CHIPS and Science Act, a landmark initiative aimed at bolstering semiconductor manufacturing and research in the US.
The US-Intel deal aims to strengthen the US semiconductor industry and ensure American leadership in leading-edge manufacturing and technology capabilities. It will also be an attempt to boost domestic chip production by reducing the dependence on foreign semiconductors.
“The discussions were at an advanced stage, but there was no guarantee it will be finalized before 2024 end,” the Financial Times reported. It further added that any takeover of all or part of Intel's business could risk disrupting the talks.
In the official press conference, Intel CEO Pat Gelsinger emphasized that this partnership will help ensure the US stays at the forefront of the AI era, and the company is committed to building a resilient and sustainable semiconductor supply chain.
This potential deal builds upon the nearly $20 billion in grants and loans awarded to Intel by US President Joe Biden in March.
The preliminary agreement allocated $8.5 billion in grants and up to $11 billion in loans for Intel's Arizona operations, where funds will be used to build two new factories and modernize an existing facility.
The grants have been made possible owing to The CHIPS and Science Act, signed into law last year. This funding will provide substantial funding for chip research, development, and manufacturing.
Intel's expanded Arizona presence is expected to create approximately 10,000 jobs, thereby stimulating local economic growth. On this deal, CEO Pat Gelsinger has stated the company's dedication to strengthening US semiconductor leadership.
The overall funding will support Intel's plans to invest over $100 billion in the US over the next five years. This will potentially create thousands of jobs and expand the country's chipmaking capacity.
This investment will have a profound impact on the US economy, with the potential to create nearly 30,000 jobs across various states, including Arizona, Ohio, New Mexico, and Oregon.
This deal is a testament to the US government's commitment to revitalizing American manufacturing and ensuring national security through strategic investments in critical technologies.