Biden gives $8.5 billion in direct aid to Intel for microprocessor plants economy

Being a tenant of the White House usually provides a big advantage at election time. The President of the United States, Joe Biden, is embarking on a tour in which official events have somewhat of a campaign feel. Among them, this Wednesday he took advantage of his visit to Arizona to announce one of his major announcements: a $20,000 million (just 18,000 million euros) incentive for the construction of four microprocessor plants by Intel in different states. The package includes $8.5 billion in direct assistance and approximately $11 billion in leveraged loans.

Biden has pursued an economic policy with a high dose of protectionism and economic nationalism in which subsidies and relief are one of the main exponents. Through the CHIPS Act, it promotes investment in microprocessors; Through the Infrastructure Law, it finances public works, mainly in roads and railways, and through the Inflation Reduction Law, it promotes investment in renewable energy.

CHIPS Act funding is intended to increase semiconductor manufacturing, research, and development capacity in the United States, particularly in cutting-edge microprocessors. It was passed with support from both the Democratic and Republican parties as a response to the lack of chips Which happened due to the epidemic. Bringing the supply chain together became a strategic industrial policy objective. This law protects the aid announced by the White House this Wednesday, at an event in which Biden visited plants being built by Intel in Chandler, Arizona, one of the six states that will be considered for the presidential elections of December 5. Is considered decisive. november.

Intel is the only American company that designs and manufactures cutting-edge logic chips. The proposed financing will help boost Intel’s R&D and semiconductor manufacturing projects at its centers in Arizona, New Mexico, Ohio and Oregon, where the company develops and produces many of the world’s most advanced semiconductor chips and packaging technologies.

The Commerce Department has proposed up to $8.5 billion in direct funding. Intel also expects to benefit from the Treasury Department’s investment tax credit (ITC) of up to 25% on eligible investments over $100 billion and the ability to qualify for federal loans up to $11 billion.

These incentives support Intel’s previously announced plans to invest more than $100 billion in the United States over five years to expand chip manufacturing capacity in the country and accelerate capabilities critical to economic and national security and emerging technologies such as artificial intelligence. We do.

According to the company, Intel’s investment is expected to create more than 10,000 company jobs and approximately 20,000 manufacturing jobs and support more than 50,000 indirect jobs with suppliers and supporting industries.

Joe Biden (center), during his visit to the Intel Ocotillo campus in Chandler, Arizona.Kevin Lamarck (Reuters)

Biden inspected silicon wafers and chips during the visit, noting with surprise how “thin” they were and telling Intel employees: “You are bringing the future back to America,” the AP reports. Commerce Secretary Gina Raimondo said the agreement struck through her department would position the United States to produce 20% of the world’s most advanced chips by 2030, thanks to Intel’s investments in facilities in the four cited states.

“Today is a defining moment for the United States and Intel as we work to advance the next great chapter of American semiconductor innovation,” said Intel CEO Pat Gelsinger. “AI is driving the digital revolution and everything digital requires semiconductors. Support for the CHIPS Act will help ensure that Intel and the United States remain at the forefront of the AI ​​age as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.

Plants in four states

Intel’s investments are focused on four different locations in Arizona, New Mexico, Ohio, and Oregon:

Chandler, Arizona: These include the construction of two new state-of-the-art factories and the modernization of an existing factory, which will significantly increase national production capacity of Intel 18A, the company’s most advanced chip design, which allows for higher performance chips. The company will manufacture the first Intel 18A products at its Arizona facility called Clearwater Forest. In 2022, Intel partnered with Maricopa County Community Colleges to launch a pioneering program with Intel employee-instructors to provide students an entry point into semiconductor technician careers. This investment will create 3,000 jobs in the manufacturing sector and 6,000 in the construction sector.

Rio Rancho, New Mexico: These include modernizing two factories into advanced packaging facilities, closing a significant gap in the domestic semiconductor supply chain. When fully operational, these facilities will be the largest in the United States. To support engineering students in New Mexico, Intel established endowed scholarships at five colleges and universities and supports science education through investments, annual grants and hands-on learning kits that benefit students living on indigenous lands. Does. This investment will create 700 jobs in the manufacturing sector and 1,000 in the construction sector.

New Albany, Ohio: Building a new regional chip manufacturing ecosystem based on the construction of two state-of-the-art factories, expansion of foundry capacity and diversification of the supply chain. Intel has funded more than 80 higher education institutions across the state to develop a pipeline of qualified workers. As part of this investment in Ohio, Intel’s design and manufacturing partner, Bechtel, signed a Project Labor Agreement (PLA) with Manufacturing Unions of North America for the construction of two facilities. This investment will create 3,000 jobs in the manufacturing sector and 7,000 in the construction sector.

Hillsboro, Oregon: Investing in a key leading development center in the United States by expanding and modernizing technical development facilities that will utilize the world’s first high-resolution EUV lithography equipment. The Gordon Moore Park campus at Ronler Acres in Hillsboro is home to Intel’s innovation center for cutting-edge semiconductor technology research and development in the United States. In 2022, Intel will spend more than $4 billion at more than 500 Oregon suppliers. This investment will support several thousand manufacturing and construction jobs.

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