Intel is set to receive $7.86 billion in direct funding through the U.S. CHIPS and Science Act to advance its semiconductor manufacturing and packaging projects in Arizona, New Mexico, Ohio and Oregon.
This funding is in addition to the $3 billion contract awarded to Intel for the Secure Enclave program that is designed to expand manufacturing of semiconductors for the U.S. government.
Today’s award, coupled with a 25 percent investment tax credit, will support Intel’s plans to invest more than $100 billion in the U.S.
Intel’s U.S. investments, including projects beyond those supported by CHIPS, support more than 10,000 company jobs, nearly 20,000 construction jobs, and more than 50,000 indirect jobs with suppliers and supporting industries.
“With Intel 3 already in high-volume production and Intel 18A set to follow next year, semiconductors are once again being made on American soil,” said Pat Gelsinger, CEO of Intel.
“The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and Intel is expected to play an important role in the revitalization of the U.S. semiconductor industry,” said U.S. Secretary of Commerce Gina Raimondo.
The CHIPS Act award will support Intel’s investments at sites including in Arizona, the Silicon Desert; New Mexico, the Silicon Mesa; Ohio, the Silicon Heartland; and Oregon, the Silicon Forest.
“The CHIPS Act incentives will spur Intel’s investments in domestic chip production, advanced packaging, and innovation, while also strengthening America’s economy, job creation, global competitiveness, and supply chain resilience,” SIA President and CEO John Neuffer said.
An SIA-Boston Consulting report released in May projected the United States will triple its domestic semiconductor manufacturing capacity from 2022 — when CHIPS was enacted — to 2032. The report projected America will capture over one-quarter (28 percent) of total global capital expenditures (capex) from 2024-2032.