Intel Corporation and the Biden-Harris Administration have announced a groundbreaking agreement that grants Intel up to $7.86 billion in direct funding through the U.S. CHIPS and Science Act. This historic award is designed to propel Intel’s commercial semiconductor manufacturing and advanced packaging initiatives across its U.S. sites in Arizona, New Mexico, Ohio, and Oregon. Complementing this funding, Intel also intends to claim a 25% Investment Tax Credit from the U.S. Treasury Department, aligning with its plans to channel over $100 billion into the nation’s semiconductor industry.
Intel CEO Pat Gelsinger expressed enthusiasm for this development, noting that with Intel 3 already in high-volume production and the advanced Intel 18A node slated for next year, the company is reinforcing its leadership in semiconductor innovation. “Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments,” Gelsinger stated, emphasizing Intel’s commitment to economic growth and national security. This collaboration underscores the U.S. government’s confidence in Intel’s pivotal role in establishing a robust, reliable domestic semiconductor supply chain.
Since the enactment of the CHIPS and Science Act over two years ago, Intel has launched ambitious plans to invest heavily in U.S.-based chipmaking and research. These initiatives are projected to generate tens of thousands of jobs, bolster domestic supply chains, and ensure U.S. dominance in cutting-edge semiconductor technologies. U.S. Secretary of Commerce Gina Raimondo highlighted the transformative impact of this funding, remarking that Intel’s expanded role will accelerate innovation, enhance national security, and revitalize the American semiconductor industry.
The CHIPS Act funding will directly bolster Intel’s ongoing projects in its key U.S. sites: Arizona (the Silicon Desert), New Mexico (Silicon Mesa), Ohio (Silicon Heartland), and Oregon (Silicon Forest). Each site specializes in critical aspects of semiconductor manufacturing, from advanced packaging to research and development. Intel’s long-standing presence in the U.S., dating back over 50 years, currently employs around 45,000 individuals, a testament to its role in shaping the global semiconductor landscape.
Intel is also pushing boundaries in semiconductor technology. It is advancing a multiyear collaboration with Amazon Web Services, developing new custom Xeon chips and AI fabric chips using Intel’s latest nodes. This partnership reflects Intel’s renewed momentum in process technology leadership, with the upcoming Intel 18A node set to redefine industry standards. Furthermore, Intel’s role in national security has been bolstered by a $3 billion manufacturing contract for the Secure Enclave program, aimed at producing trusted semiconductors for the U.S. government.
Adding to these milestones, Intel has achieved a significant breakthrough with the completion of its first commercial High Numerical Aperture Extreme Ultraviolet lithography scanner, along with an additional High NA tool at its Hillsboro R&D site. These advancements position Intel at the forefront of next-generation chip manufacturing, reinforcing its commitment to innovation and global leadership in semiconductors.
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