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    Biden Administration Boosts Intel with $11 Billion for Chip

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    The Biden administration has agreed to loan Intel up to $11 billion and provide up to $8.5 billion in direct aid to computer chip factories in Oregon, Arizona, Ohio and New Mexico.

    The Biden administration has agreed to provide Intel with up to $11 billion in direct funding and up to $8.5 billion for computer chip factories in Oregon, Arizona, Ohio and New Mexico.

    Also read: Biden-Harris administration sets AI agenda according to presidential directive

    according to intelthe new funding and other investments will create 30,000 jobs in manufacturing and construction.

    Intel and Biden agreement

    Speaking from the side, intel campus in Chandler, Arizona, where Biden said the award would support thousands of new manufacturing jobs, including those that don't require a college degree.

    According to Biden, this will revolutionize the semiconductor industry. Further, he asked:

    “Where is it written that we won't be the manufacturing capital of the world again?”

    The award is the largest ever made by the federal government using funding from the CHIPS Act, which lawmakers passed in 2022 to help re-establish the United States as a leader in semiconductor manufacturing. This will be done towards the construction and expansion of Intel facilities. America.

    Spending $39 billion in subsidies, the Biden administration is leading a bold effort to increase manufacturing of the tiny chips that power computers, smartphones and cars.

    This effort is at the heart of Mr. Biden's goal of reducing America's dependence on other countries. Although the United States invented the semiconductor, only about 10% of the world's chips are produced here.

    “Nearly all of the industry's most advanced chip manufacturing moved overseas to Asia several years ago,” Biden said.

    “Today's investment is significant. We will enable the return of advanced semiconductor manufacturing right here in America.”

    Intel to apply for federal tax credits

    Intel is expected to apply for federal tax credits that could offset up to 25% of the expected $100 billion cost of the five-year expansion project in the United States.

    According to representatives, biden The project is expected to create more than 10,000 manufacturing jobs and approximately 20,000 construction jobs, according to administration officials.

    The award will help increase domestic production of cutting-edge semiconductors used in artificial intelligence, smartphones, supercomputers and the most sensitive military hardware, said Commerce Secretary Gina Raimondo, who oversees the department. That's what it means. Distribution of subsidies. At this time, none are produced in the United States.

    Raimondo said Intel's grant is the largest ever given to a company. chip Manufacturers are also working on this as part of new initiatives. By the end of this decade, she says, the investment will allow the United States to produce about 20% of the world's most advanced chips.

    Raimondo said Wednesday on Intel's campus that the investment will enable Intel to produce the world's most sophisticated and cutting-edge chips that strengthen the economy and national security.

    Additionally, Sen. Jeff Merkley tweeted: They are investing in American manufacturing thanks to CHIPS and the Science Act.

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