Biden will announce the Intel chips grant in Arizona next week

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Biden will announce the Intel chips grant in Arizona next week
Biden will announce the Intel chips grant in Arizona next week

President Joe Biden and Commerce Secretary Gina Raimondo plan to announce a multibillion-dollar award for Intel next week in Arizona, paving the way for the corporation to increase chip production in the United States.

President Joe Biden and Commerce Secretary Gina Raimondo intend to announce a multibillion-dollar award for Intel (INTC.O.) next week in Arizona, paving the way for the company to expand chip production in the United States, according to two individuals familiar with the situation.

Intel, which, according to one source, invited customers and suppliers to the event, declined to comment.

The corporation has applied for funds to fund development ambitions in both Ohio and Arizona, a vital political swing state that Biden, who is running for reelection against Republican Donald Trump, hopes to win in November.

Intel’s award, a combination of grants and loans, will be the most significant to date from the 2022 CHIPS and Science Act, America’s attempt to boost domestic semiconductor output with $52.7 billion in funding, including $39 billion in subsidies for semiconductor production and $11 billion for R&D.

Last month, the Biden administration awarded $1.5 billion to GlobalFoundries (GFS.O.), the world’s third-largest contract chipmaker, to develop a new semiconductor production facility in Malta, New York, as well as expand current operations in Burlington, Vermont.

In January, the U.S. Commerce Department announced that Microchip Technology (MCHP.O) would receive $162 million in government funding, allowing Microchip to increase production of mature-node semiconductor chips and microcontroller units at two US factories.

Awards for South Korea’s Samsung and Taiwan’s TSMC are likely in the following weeks.

The goal is to lessen dependency on China and Taiwan, as the United States’ share of global semiconductor production capacity has declined from 37% in 1990 to 12% in 2020, according to the Semiconductor Industry Association.

Intel’s grant would solidify Arizona’s status as a domestic chipmaking powerhouse, following Taiwan’s TSMC (2330.TW) announcement of a new Phoenix-based facility in 2020 and Intel’s announcement last year of plans to add two facilities to its Chandler campus.

Intel also announced plans to build a $20 billion semiconductor manufacturing center near Albany, Ohio, but the Wall Street Journal reported last month that work would not be completed until late 2026.

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