Accelerating its domestic semiconductor growth, the US government sanctioned almost $7.9 billion for Intel to create 10,000+ jobs and power AI and military tech in its facilities nationwide.
The White House has recently finalised Intel’s funding through the CHIPS and Science Act, reportedly reducing the original award from $8.5 billion to $7.86 billion. The fund will assist in developing semiconductor manufacturing projects in Arizona, New Mexico, Ohio, and Oregon.
Additionally, the package includes a $3 billion contract to supply chips for the US Department of Defence and a 25% investment tax credit, bolstering Intel’s aim on investing over $100 billion in the United States for the next five years and creating more than 10,000 jobs.
Eyeing to utilise the financial support, Intel’s plans include developing new semiconductor process nodes, focusing on the Intel 18A, which will be used in technologies related to artificial intelligence and military applications. Microsoft is among the companies planning to use this advanced technology for their in-house chip production.
The investment will also create substantial job opportunities, including more than 10,000 manufacturing roles and nearly 20,000 construction positions. Furthermore, 50,000 indirect jobs will be generated across Intel’s supply chain and associated industries. As part of the agreement, approximately $50 million will be dedicated to workforce development, building on Intel’s previous $250 million investment over five years to support local communities, colleges, universities, and apprenticeship programmes.
This marks the sixth CHIPS Act funding award issued by the Biden administration as part of its effort to distribute funds before President-elect Donald Trump takes office in January.
Since its inception in 2022, the support aims to accelerate semiconductor production as part of broader efforts to advance US manufacturing and technological capabilities.
Despite facing recent delays in its Ohio manufacturing project, Intel is optimistic that the funding will help accelerate its construction timelines. The company recently pushed back the expected completion date for its $20 billion New Albany site, which includes two chip factories, to late 2026.
The CHIPS Act funding will support the ongoing work at the New Albany site as well as projects in other states, according to an Intel spokesperson.
