Intel Gets $8.5 Billion for Chip Plants

The Biden administration has agreed to provide as much as $8.5 billion in grants to Intel Corp. to build new and beef up existing semiconductor manufacturing and r&d at sites in Arizona, New Mexico, Ohio and Oregon.

The money is being given as part of the CHIPS and Science Act, a 2022 law that aims to boost semiconductor manufacturing in the U.S., especially for leading-edge chips used for applications such as artificial intelligence or in sensitive military equipment.

Intel can also draw up to $11 billion in federal loans, and federal tax credits could cover a quarter of the expense of its U.S. expansion projects, the company says in a press release. Intel says it plans to invest more than $100 billion over the next five years in the expansion effort.

The company’s planned investments in the U.S. are expected to create more than 10,000 new permanent manufacturing jobs at the company as well almost 20,000 construction jobs. That’s in addition to supporting more than 50,000 jobs with suppliers and supporting industries.

Here’s how the latest funding will be used in each state:

Arizona

• Funding will go toward building two advanced plants, as well as modernizing an existing facility at Intel’s campus in Chandler, just outside Phoenix.

Ohio

• Two new factories will be built at a site in New Albany, near Columbus.

New Mexico

• Intel will transform two plants into advanced packaging facilities.

Oregon

• Intel will expand and modernize its innovation hub in Hillsboro, which is just outside Portland.

The U.S. Department of Commerce is overseeing the grant distribution. Intel must meet certain construction and manufacturing milestones to receive the money, which is expected to start flowing by the end of the year. The funds are also subject to due diligence, the DoC says.

Intel is the fourth company to receive grants under the federal program, following GlobalFoundries, Microchip Technology and BAE Systems.