The U.S. Department of Commerce has reached a preliminary agreement where Intel will not only be provided up to $8.5 billion in direct funding, but also $11 billion in loans, as part of the CHIPS and Science Act—a U.S. federal statute that was launched in August 2022 to boost research and manufacturing of semiconductors in the United States—the White House has announced. With this development, Intel is expected to spend $100 billion as part of its plan for building and expanding factories across a handful of states and creating thousands of new jobs. (Intel may also be getting $25 billion in tax breaks.)
Where, and how, the money will be put to work:
- Chandler, Arizona: Funding will help construct two leading-edge logic fabs and modernize one existing fab, significantly increasing manufacturing capacity to produce Intel’s most advanced semiconductors in the United States. This investment will create over 3,000 manufacturing jobs, 7,000 construction jobs, and thousands of indirect jobs. Intel’s investment in Arizona is among the largest private sector investments in the state’s history.
- New Albany, Ohio: Funding will establish a new regional economic cluster for U.S. chipmaking with the construction of two leading-edge logic fabs. This investment will create 3,000 manufacturing jobs, 7,000 construction jobs, and an estimated 10,000 indirect jobs. Intel’s investment in Ohio is the largest private-sector investment in the state’s history.
- Rio Rancho, New Mexico: Funding will support the nearly complete modernization and transformation of two fabs into advanced packaging facilities, where chips are assembled together to boost their performance and reduce costs. Advanced packaging is critical for artificial intelligence (AI) applications and the next generation of semiconductor technology. It also allows manufacturers to improve performance and function and shorten the time it takes to get many advanced chips to market. When completed, these facilities will be the largest for advanced packaging in the United States. This investment will create 700 manufacturing jobs and 1,000 construction jobs.
- Hillsboro, Oregon: Funding will expand and modernize facilities to increase clean-room capacity and utilize advanced lithography equipment, further strengthening this critical innovation hub of leading-edge development and production in the United States. This investment will support several thousand new permanent and construction jobs and thousands of indirect jobs.
Intel on what else is coming:
In addition to its significant investments to expand U.S. manufacturing capacity, Intel is on track to deliver five semiconductor process nodes in four years and expects to return to process technology leadership by 2025 with Intel 18A. Intel recently announced an extended process technology roadmap that adds the more-advanced Intel 14A to the company’s leading-edge node roadmap, in addition to several specialized node evolutions.