Biden to give $8.5billion to Intel to build more chip factories

Biden to give $8.

• Intel expects to receive $8.5 billion in funding from the U.S. government and an $11 billion loan to expand its chip manufacturing capacity.
• The $19.5 billion in funding was released as part of the Chip and Science Act of 2022.
• The New Mexico facility will be used for chip “advanced packaging” or simultaneous assembly, which the White House says is “critical” for AI and “next-gen semiconductor technology.”

Heavy investment in construction of chip factories in US

The White House announced Wednesday morning that President Biden pledged $8.5 billion in direct funding and another $11 billion in loans to Intel to build or renovate chip manufacturing facilities in Arizona, Ohio, New Mexico and Oregon.

The $19.5 billion in funding was released as part of the Chip and Science Act of 2022. The government estimates the new facility will create nearly 30,000 jobs.

Also read: Intel aims for over 100 million AI PCs globally by 2025

Also read: Israel commits $3.2 billion to propel Intel’s $25 billion chip plant

Urgent need to build the National Semiconductor Technology Centre

The White House expects Intel to use the money to build two new plants in Chandler, Ariz., and update an existing one. Intel will build two new plants in New Albany, Ohio, and two in Rio Rancho, New Mexico. According to the announcement, the company will also fund renovations to facilities in Hillsboro, Oregon. 

The New Mexico facility is used for chip “advanced packaging” or simultaneous assembly, which the White House says is “critical” for artificial intelligence and “next generation semiconductor technology.” The White House has repeatedly pointed out that while the United States invented semiconductor chips, it produces less than 10 percent of the world’s chip supply today.

Last month, the Biden administration announced it would invest $5 billion in chip research and development in the United States to create a national Semiconductor Technology Centre.