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The U.S. Department of Commerce and Intel Corporation have reached a non-binding preliminary memorandum of terms (PMT) to provide up to $8.5 billion in direct funding under the CHIPS and Science Act to strengthen the U.S. supply chain and re-establish American leadership in semiconductor manufacturing, the Biden-Harris Administration said today. This is the Department of Commerce’s fourth PMT announcement under the CHIPS and Science Act. So-called leading-edge chips power the most sophisticated technology extant, including developing AI and building critical military systems and weapons.
“There is no one who cares more about revitalizing American manufacturing than President Biden, and today’s announcement is a massive step towards ensuring America’s leadership in manufacturing for the 21st century. With this agreement, we are helping to incentivize over $100 billion in investments from Intel – marking one of the largest investments ever in U.S. semiconductor manufacturing, which will create over 30,000 good-paying jobs and ignite the next generation of innovation,” said U.S. Secretary of Commerce Gina Raimondo.
During the next five years, Intel expects its investments in the United States to exceed $100 billion, as it expands capacity and capabilities in Arizona, New Mexico, Ohio, and Oregon, estimated to directly create more than 10,000 manufacturing jobs and nearly 20,000 construction jobs. Intel’s process technologies such as Intel 18A and advanced packaging technologies, combined with its foundry services, would better enable U.S. companies to lead the AI industry by ensuring a domestic supply of these advanced chips.
The Biden Administration’s proposed CHIPS investment, coupled with Intel’s investment, would mark one of the largest investments ever announced in U.S. semiconductor manufacturing. The PMT also includes ~$50 million in dedicated funding to develop the company’s semiconductor and construction workforce. This builds upon Intel’s own workforce investments, totaling more than $250 million in the past five years, as well as what is claimed to be strong partnerships with local communities, community colleges, universities, Historically Black Colleges and Universities (HBCUs), and apprenticeship programs.
“This announcement is the culmination of years of work by President Biden and bipartisan efforts in Congress to ensure that the leading-edge chips we need to secure our economic and national security are made in the U.S.,” said Raimondo.
The proposed CHIPS funding would strengthen all major technical processes for leading-edge chips to occur in the United States, including proposed investments in:
- Chandler, Arizona: Construction of two new leading-edge logic fabs and modernization of one existing fab, significantly increasing leading-edge logic capacity, including high volume domestic production of Intel 18A – the company’s most advanced chip design that enables higher performing, leading-edge chips through RibbonFET gate-all-around transistors and PowerVia backside power delivery. The company will produce the first Intel 18A product, called Clearwater Forest, at its Arizona facilities. In 2022, Intel partnered with Maricopa County Community Colleges to launch a first-of-its-kind program with Intel employee-instructors to provide students an entry point into semiconductor technician careers. This investment will support 3,000 manufacturing jobs and 6,000 construction jobs.
- Rio Rancho, New Mexico: Modernization of two fabs into advanced packaging facilities to close an important gap in the domestic semiconductor supply chain. When in full production, this facility will be the largest advanced packaging facility in the United States. To support engineering students in New Mexico, Intel established endowment scholarships at five colleges and universities and has supported STEAM education through investments, annual grants, and hands-on learning kits benefitting students living on Indigenous lands. This investment will support 700 manufacturing jobs and 1,000 construction jobs.
- New Albany, Ohio: Creation of a new regional chipmaking ecosystem, anchored by the construction of two leading-edge logic fabs, expanded leading-edge foundry capacity, and supply chain diversification. Intel has devoted significant resources to developing a pipeline of skilled workers in Ohio, funding over 80 institutions of higher education across the state, including community colleges, HBCUs, and universities. As part of this investment in Ohio, Intel’s design and build partner Bechtel signed a Project Labor Agreement (PLA) with the North America Building Trades Unions for the construction of the two facilities. This investment will support 3,000 manufacturing jobs and 7,000 construction jobs.
- Hillsboro, Oregon: Investment in the premier hub of leading-edge development in the United States through the expansion and modernization of technology development facilities that will utilize the world’s first High NA EUV lithography equipment. The Gordon Moore Park campus at Ronler Acres in Hillsboro, Oregon is the heart of Intel’s innovation hub for leading-edge semiconductor research and technology development in the United States. These investments will further the company’s technological leadership and enable the continued development of new innovations. In 2022, Intel spent more than $4 billion with more than 500 suppliers across Oregon. This investment will support several thousand manufacturing and construction jobs.
Intel claims it currently uses 100% renewable electricity in U.S. fabrications and has achieved net-positive water status in its U.S. operations through water management, water reuse, and, in collaboration with local communities, investment in water restoration in local watersheds. In addition, as part of its broader workforce investment program, Intel has committed to providing affordable, accessible, high-quality child care for its workers across its facilities. For U.S. employees, Intel will be increasing the reimbursement amount and duration for its back-up care program and adding additional access to discounted primary child care providers, as well as access to a vetted network of child care providers. In addition, Intel will pilot a primary child care reimbursement program for non-exempt employees.
In addition to the proposed direct funding of up to $8.5 billion, the CHIPS Program Office would make up to $11 billion in loans, part of the $75 billion in loan authority provided by the CHIPS and Science Act, available to Intel under the PMT. The company has said that it is planning to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures.
“Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor manufacturing innovation,” said Intel CEO Pat Gelsinger. “AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help to ensure that Intel and the U.S. stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”
AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Department of Commerce Proposes $8.5B Intel Funding
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The U.S. Department of Commerce and Intel Corporation have reached a non-binding preliminary memorandum of terms (PMT) to provide up to $8.5 billion in direct funding under the CHIPS and Science Act to strengthen the U.S. supply chain and re-establish American leadership in semiconductor manufacturing, the Biden-Harris Administration said today. This is the Department of Commerce’s fourth PMT announcement under the CHIPS and Science Act. So-called leading-edge chips power the most sophisticated technology extant, including developing AI and building critical military systems and weapons.
“There is no one who cares more about revitalizing American manufacturing than President Biden, and today’s announcement is a massive step towards ensuring America’s leadership in manufacturing for the 21st century. With this agreement, we are helping to incentivize over $100 billion in investments from Intel – marking one of the largest investments ever in U.S. semiconductor manufacturing, which will create over 30,000 good-paying jobs and ignite the next generation of innovation,” said U.S. Secretary of Commerce Gina Raimondo.
During the next five years, Intel expects its investments in the United States to exceed $100 billion, as it expands capacity and capabilities in Arizona, New Mexico, Ohio, and Oregon, estimated to directly create more than 10,000 manufacturing jobs and nearly 20,000 construction jobs. Intel’s process technologies such as Intel 18A and advanced packaging technologies, combined with its foundry services, would better enable U.S. companies to lead the AI industry by ensuring a domestic supply of these advanced chips.
The Biden Administration’s proposed CHIPS investment, coupled with Intel’s investment, would mark one of the largest investments ever announced in U.S. semiconductor manufacturing. The PMT also includes ~$50 million in dedicated funding to develop the company’s semiconductor and construction workforce. This builds upon Intel’s own workforce investments, totaling more than $250 million in the past five years, as well as what is claimed to be strong partnerships with local communities, community colleges, universities, Historically Black Colleges and Universities (HBCUs), and apprenticeship programs.
“This announcement is the culmination of years of work by President Biden and bipartisan efforts in Congress to ensure that the leading-edge chips we need to secure our economic and national security are made in the U.S.,” said Raimondo.
The proposed CHIPS funding would strengthen all major technical processes for leading-edge chips to occur in the United States, including proposed investments in:
Intel claims it currently uses 100% renewable electricity in U.S. fabrications and has achieved net-positive water status in its U.S. operations through water management, water reuse, and, in collaboration with local communities, investment in water restoration in local watersheds. In addition, as part of its broader workforce investment program, Intel has committed to providing affordable, accessible, high-quality child care for its workers across its facilities. For U.S. employees, Intel will be increasing the reimbursement amount and duration for its back-up care program and adding additional access to discounted primary child care providers, as well as access to a vetted network of child care providers. In addition, Intel will pilot a primary child care reimbursement program for non-exempt employees.
In addition to the proposed direct funding of up to $8.5 billion, the CHIPS Program Office would make up to $11 billion in loans, part of the $75 billion in loan authority provided by the CHIPS and Science Act, available to Intel under the PMT. The company has said that it is planning to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures.
“Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor manufacturing innovation,” said Intel CEO Pat Gelsinger. “AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help to ensure that Intel and the U.S. stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”
AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.