Intel's Big U. S. Chip Boost: A Closer Look

Intel, a major player in semiconductor manufacturing, has received a substantial boost from the U. S. government. The Department of Commerce has awarded Intel $7. 865 billion to support domestic chip production. This funding is part of the CHIPS and Science Act, a law passed by President Joe Biden to strengthen U. S. technology and manufacturing leadership. The money will be used for advanced chip manufacturing and packaging projects across Intel facilities in Arizona, New Mexico, Ohio, and Oregon. Intel's CEO, Pat Gelsinger, emphasized the importance of this investment for the country's economic growth and national security. While the funding is less than the initially discussed $8. 5 billion, it's still a significant amount to support Intel's expansion.Intel is transitioning to a "foundry" model, where it manufactures chips for other companies. This shift requires increased capacity, and Intel has invested billions in new facilities, like those in Arizona and Ohio. However, some international projects have faced delays. Domestically, Intel plans to invest around $100 billion in its manufacturing operations. The U. S. government's goal is to reduce dependence on foreign chip production, a concern highlighted by supply chain issues during the pandemic. Intel is crucial to these efforts. The government will also provide a 25% investment tax credit and has awarded Intel a $3 billion contract for national security semiconductors.