Biden set to announce major Intel chip grant in Arizona next week
President Joe Biden gears up to unveil a substantial multi-billion-dollar grant for Intel; the announcement is expected to take place next week in Arizona
President Joe Biden, alongside Commerce Secretary Gina Raimondo, is gearing up to unveil a substantial multi-billion-dollar grant for Intel, slated to expand chip production within the United States.
The announcement is expected to take place next week in Arizona.
While Intel refrained from commenting on the matter, insider sources suggest the company has been actively pursuing grants to support expansion initiatives in both Ohio and Arizona.
Arizona, a pivotal swing state, holds strategic significance in Biden's reelection bid against Republican contender Donald Trump.
CHIPS and Science Act implementation
The forthcoming grant to Intel, a combination of subsidies and loans, marks a significant milestone in the implementation of the 2022 CHIPS and Science Act.
This act, allocating $52.7 billion to bolster domestic semiconductor production, includes $39 billion for production subsidies and $11 billion earmarked for research and development.
In a recent development, the Biden administration awarded $1.5 billion to GlobalFoundries, the world's third-largest contract chipmaker, facilitating the construction of a new semiconductor facility in Malta, New York. This initiative also involves the expansion of existing operations in Burlington, Vermont.
Earlier this year, the U.S. Commerce Department revealed plans to grant $162 million to Microchip Technology, enabling the company to triple its production of mature-node semiconductor chips and microcontroller units across two U.S. factories.
Reducing dependence on foreign manufacturers
Anticipated awards for tech giants Samsung of South Korea and Taiwan's TSMC are on the horizon, further aligning with the overarching goal of diminishing reliance on China and Taiwan.
The U.S. has seen a decline in its global semiconductor manufacturing capacity share, dropping from 37% in 1990 to 12% in 2020, as reported by the Semiconductor Industry Association.
The influx of grants solidifies Arizona's stature as a formidable chipmaking hub.
This follows Taiwan's TSMC's announcement in 2020 of a new facility in Phoenix and Intel's unveiling of plans to expand its Chandler campus with two additional factories last year.
Delays in Ohio amid expansion plans
Despite Intel's ambitious intentions, their plan to construct a $20 billion chipmaking complex in Albany, Ohio, faces delays.
According to experts, completion is not anticipated until late 2026, underscoring the complexities inherent in such large-scale endeavors.
Source: Newsroom
