USA Boosts Intel with $19.5 Billion Injection for Chip Production

The U.S. government injects a record $19.5 billion into Intel under the CHIPS Act to accelerate chip production, marking a monumental boost for the American tech giant. President Joe Biden emphasizes the importance of this investment in revitalizing America's technological infrastructure, highlighting the significance of domestic semiconductor manufacturing. Commerce Secretary Gina Raimondo underscores the grant's role in enabling Intel to produce cutting-edge chips essential for artificial intelligence and military systems. The CHIPS and Science Act, passed in 2022, aims to strengthen the domestic chip supply chain and support research and development initiatives, with Intel's grant accounting for approximately 22% of the total subsidy. Intel plans to invest over $100 billion in chipmaking and packaging plants across four states, positioning itself as a formidable competitor in semiconductor manufacturing. The government's support for Intel reflects broader efforts to strengthen the domestic semiconductor industry, with significant job creation and economic growth anticipated. Intel's investments are expected to create over 10,000 company jobs, nearly 20,000 construction jobs, and support more than 50,000 indirect jobs with suppliers and supporting industries. The funding is intended to help Intel stay at the forefront of the AI era and compete against industry giants like TSMC and Samsung. Despite challenges, the government remains optimistic about the future of semiconductor manufacturing in America, recognizing the strategic importance of semiconductor technology. President Biden's administration's investment in Intel's computer chip plants in four states aims to reduce U.S. dependence on overseas chip manufacturers and create 20% of the world's most advanced chips by 2030. The funding announcement comes amid the 2024 presidential campaign, with Biden touting his economic policies and job growth achievements. Intel's funding, combined with its plans to invest over $100 billion in the U.S., is expected to create 10,000 company jobs, 20,000 construction jobs, and support more than 50,000 indirect jobs. The Biden administration's support for Intel's chip production aims to bolster U.S. manufacturing and reduce economic risks associated with overseas chip production. The CHIPS Act, a critical industrial policy legislation, is seen as a defining moment for the United States and the semiconductor industry, positioning Intel as a global leader in semiconductor manufacturing.