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The White House said: intel The company has received up to $8.5 billion in CHIPS Act funding as the Biden administration ramps up efforts to bring semiconductor manufacturing to U.S. soil.
Intel could receive an additional $11 billion in financing from the CHIPS and Science Act passed in 2022. The award will be announced by President Joe Biden in Arizona on Wednesday.
U.S. Commerce Secretary Gina Raimondo said in a call with reporters that the funding will help “cutting-edge, American-made semiconductors” keep “America in the driver’s seat of innovation.” Intel and the White House said the agreement is non-binding, preliminary and subject to change, she said.
Intel has long been a stalwart of the U.S. semiconductor industry, developing chips that power many PCs and data center servers around the world. However, the company’s revenue is being lost due to: Nvidialeads in artificial intelligence chips and has been overtaken by rivals in market capitalization AMD mobile phone chip manufacturers Qualcomm.
Despite falling behind its competitors, Intel is in a unique position in the industry because in addition to designing processors, it operates chip factories, or fabs. AMD and Nvidia are fabless. That means designing the chip and sending the computer files and staff to the manufacturer in Taiwan. TSMC For the manufacture of devices.
TSMC has dominated the cutting edge of semiconductor manufacturing in recent years, so much so that all of the world’s fastest processors are physically manufactured in Taiwan.
It was long expected that Intel would be one of the biggest beneficiaries of the CHIPS Act (Creation of Incentives to Help Semiconductor Production), which aimed to release about $53 billion in incentives for domestic chip technology. That’s a big reason. The primary motivation behind the CHIPS Act was to encourage companies to build factories on the U.S. mainland to prevent supply disruptions if China invaded Taiwan.
Intel announced that it will use CHIPS Act funds to support factories and research centers in Arizona, Ohio, New Mexico, and Oregon. The company previously announced plans to spend $100 billion on U.S. programs and facilities. Intel has announced plans to catch up in cutting-edge manufacturing by 2026.
Intel’s Ohio factory will cost more than $20 billion to build, and Intel said it plans to begin production in 2027 or 2028. Intel is also expanding its manufacturing operations in Arizona and New Mexico. Intel says the project will create 20,000 jobs in fab construction and 10,000 jobs in chip manufacturing.
Intel CEO Pat Gelsinger said on a call with reporters that the Ohio factory not only makes AI chips for Intel, but also for other semiconductor companies. He said there is a possibility.
“Drive close to the Ohio site,” Gelsinger said. “A large number of cranes and concrete trucks are building what we believe will be a large-scale manufacturing hub for AI chips, especially in the United States.”
global foundriesMicrochip and BAE Systems have already received CHIPS Act funding. To the Semiconductor Industry Association. TSMC plans to receive CHIPS Act funding to build a factory in Arizona. apple And AMD chips.