Intel Gets $7.8 Billion to Boost Chip Manufacturing in 4 States

The Commerce Department officially announced a large investment in the U.S. semiconductor industry on Nov. 26, awarding Intel Corp. $7.86 billion in direct funding under the CHIPS Incentives Program.
“The CHIPS for America program will supercharge American innovation and technology and make our country more secure—and Intel is playing an important role in the revitalization of the U.S. semiconductor industry through its unprecedented investments across Arizona, New Mexico, Ohio, and Oregon,” Secretary of Commerce Gina Raimondo said in the announcement.
The agency will disburse the funds based on Intel’s completion of specific project milestones, ensuring accountability and progress, they said in their announcement.
This significant award is set to support multiple projects that will enhance the domestic supply of advanced chips, essential for powering sophisticated technologies such as artificial intelligence and critical military capabilities. Intel’s expansion is estimated to create about 10,000 manufacturing jobs and 20,000 construction jobs across the four states.
White House deputy chief of staff Natalie Quillian said the investment aligns with the Biden administration’s broader goals of stimulating private sector investment and revitalizing communities through large public investments.
She said the award was another key step in reshoring manufacturing and creating thousands of well-paying jobs.
Intel’s CEO, Pat Gelsinger, said the company is committed to advancing U.S. semiconductor manufacturing.
“With Intel 3 already in high-volume production and Intel 18A set to follow next year, leading-edge semiconductors are once again being made on American soil,” he said. “Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security.”
In Rio Rancho, New Mexico, two existing facilities will be modernized into an advanced packaging facility, which will become the largest of its kind in the United States upon reaching full production.
In New Albany, Ohio, the investment will create a new regional chipmaking ecosystem anchored by a leading-edge logic fabrication facility producing the Intel 14A and future nodes, expanding foundry capacity.
In Hillsboro, Oregon, Intel will invest in leading-edge research and development facilities using the world’s first commercial high-NA EUV lithography equipment to develop and produce Intel 18A and future nodes.
The CHIPS for America program—funded through the bipartisan CHIPS and Science Act of 2022—has so far awarded more than $19 billion of the $36 billion in proposed incentives funding, with announcements across 20 states anticipated to create more than 125,000 jobs.
All CHIPS funding recipients are required to adhere to specific restrictions regarding stock buybacks and national security guardrails and limiting the sharing of intellectual property, according to the department.