President Joe Biden Announces $20 Billion Incentives for Intel Plants
President Joe Biden is making waves with a new economic policy that includes high levels of protectionism and economic nationalism. During a recent tour, Biden announced incentives totaling $20 billion for Intel to build four microprocessor plants in different states. The package includes $8.5 billion in direct aid and approximately $11 billion in advantageous loans.
The enactment of the CHIPS Act aims to increase semiconductor manufacturing capacity and research and development in the United States, especially in cutting-edge microprocessors. This law, which received bipartisan support, is part of the government’s response to the chip shortage caused by the pandemic and emphasizes bringing the supply chain closer together as a strategic industrial policy objective.
The proposed funding would help Intel boost its research and development projects in Arizona, New Mexico, Ohio, and Oregon. The expected investments are set to create more than 10,000 jobs within the company and nearly 20,000 construction jobs, along with supporting over 50,000 indirect jobs with suppliers and related industries.
During a visit to Intel’s Ocotillo Campus in Chandler, Arizona, President Biden marveled at silicon wafers and chips, praising the company for “bringing the future back to America.” Commerce Secretary Gina Raimondo stated that the agreement reached with Intel would position the U.S. to produce 20% of the world‘s most advanced chips by 2030.
Intel CEO Pat Gelsinger also expressed excitement about the contributions of the CHIPS Act to American semiconductor innovation, emphasizing the importance of semiconductors in driving the digital revolution and advancements in artificial intelligence.
The investments in Arizona, New Mexico, Ohio, and Oregon will focus on expanding chip manufacturing capacity and developing critical capabilities for national security and emerging technologies. The creation of thousands of jobs in both manufacturing and construction sectors is expected to have a significant impact on the local economies of the four states.
With this move, Biden aims to bolster the American semiconductor industry and secure a stronger position in global chip production. The incentives offered to Intel mark a significant step towards strengthening the U.S. semiconductor supply chain and driving innovation in the tech sector.