President Biden is poised to announce a significant deal with Intel, marking a major step in his administration’s efforts to revitalize semiconductor manufacturing in the United States.
Under the agreement, Intel will receive substantial financial support, including up to $8.5 billion in grants and an additional $11 billion in loans, to facilitate the construction of semiconductor plants in four states.
This development represents the most significant announcement thus far in President Biden’s initiative to bolster domestic chip production.
Joe Biden (Credits: India TV News)
The funding is made possible through the CHIPS and Science Act, a legislative measure passed by Congress in 2022, which earmarked over $52 billion for projects aimed at significantly enhancing U.S. semiconductor manufacturing capacity.
The deal with Intel, while still in the preliminary stages and subject to finalization pending due diligence, underscores the commitment of both the government and the private sector to invest in critical infrastructure.
Intel, a leading chipmaker, plans to complement the government funding with over $100 billion of its investment into these projects.
Intel (Credits: Times of India)
CEO Pat Gelsinger of Intel indicated that the company anticipates leveraging up to $25 billion in investment tax credits to offset its substantial financial commitment.
This collaboration between the government and Intel reflects a concerted effort to address the semiconductor shortage and strengthen America’s technological competitiveness on the global stage.
This agreement signals a significant milestone in the Biden administration‘s push to reinvigorate domestic semiconductor manufacturing, with the potential to generate economic growth, enhance national security, and foster innovation in critical industries.
