Four Intel Projects Targeted For $8.5B CHIPS And Science Act Funds

U.S. Department of Commerce has proposed up to $8.5 billion in direct funding through the CHIPS and Science Act to advance Intel’s commercial semiconductor projects in Arizona, New Mexico, Ohio and Oregon.

Intel and the U.S. Department of Commerce have signed a non-binding preliminary memorandum of terms (PMT) for up to $8.5 billion in direct funding to Intel for commercial semiconductor projects under the CHIPS and Science Act. CHIPS Act funding aims to increase U.S. semiconductor manufacturing and R&D capabilities. Intel is the only American company that both designs and manufactures leading-edge logic chips.

Intel CHIPS Act
Intel employees in clean room “bunny suits” work at Intel’s D1X factory in Hillsboro, Oregon. The opening of D1X’s “Mod3” in 2022 provided Intel engineers with an additional 270,000 square feet of clean room space to develop next-generation silicon process technologies. (Credit: Intel Corporation)

 

The proposed funding would support Intel’s investments in Arizona, the Silicon Desert; New Mexico, the Silicon Mesa; Ohio, the Silicon Heartland; and Oregon, the Silicon Forest. Intel previously announced plans to invest more than $100 billion in the U.S. over five years to  expand U.S. chipmaking capacity and capabilities critical to economic and national security and acceleration of emerging technologies, such as AI.

The projects are:

  • Chandler, Arizona: Funding will help construct two leading-edge logic fabs and modernize one existing fab, significantly increasing manufacturing capacity to produce Intel’s most advanced semiconductors in the U.S. This investment will create over 3,000 manufacturing jobs, 7,000 construction jobs, and thousands of indirect jobs. Intel’s investment in Arizona is among the largest private sector investments in the state’s history.

On March 20, Intel CEO Pat Gelsinger will lead an event to celebrate Intel’s CHIPS and Science Act direct funding announcement.

View a livestream on the Intel Newsroom.

  • New Albany, Ohio: Funding will establish a new regional economic cluster for U.S. chipmaking with the construction of two leading-edge logic fabs. This investment will create 3,000 manufacturing jobs, 7,000 construction jobs, and an estimated 10,000 indirect jobs. Intel’s investment in Ohio is the largest private-sector investment in the state’s history.
  • Rio Rancho, New Mexico: Funding will support the nearly complete modernization and transformation of two fabs into advanced packaging facilities, where chips are assembled together to boost their performance and reduce costs. Advanced packaging is critical for artificial intelligence (AI) applications and the next generation of semiconductor technology. It also allows manufacturers to improve performance and function and shorten the time it takes to get many advanced chips to market. When completed, these facilities will be the largest for advanced packaging in the U.S. This investment will create 700 manufacturing jobs and 1,000 construction jobs.
  • Hillsboro, Oregon: Funding will expand and modernize facilities to increase clean-room capacity and utilize advanced lithography equipment, further strengthening this critical innovation hub of leading-edge development and production in the U.S. This investment will support several thousand new permanent and construction jobs and thousands of indirect jobs.

Intel also expects to benefit from a U.S. Treasury Department Investment Tax Credit (ITC) of up to 25% on more than $100 billion in qualified investments and eligibility for federal loans up to $11 billion.

“CHIPS Act support will help to ensure that Intel and the U.S. stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”

— Intel CEO Pat Gelsinger

“Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor innovation,” said Intel CEO Pat Gelsinger. “AI is supercharging the digital revolution and everything digital needs semiconductors. CHIPS Act support will help to ensure that Intel and the U.S. stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”

Together, the CHIPS Act proposed funding and Intel’s previously announced investment plans constitute one of the largest public-private investments ever made in the U.S. semiconductor industry. It will foster U.S.-based R&D, strengthen U.S. supply chains, and help ensure American leadership in leading-edge semiconductor manufacturing and technology capabilities.

“There is no one who cares more about revitalizing American manufacturing than President Biden, and today’s announcement is a massive step towards ensuring America’s leadership in manufacturing for the 21st century. With this agreement, we are helping to incentivize over $100 billion in investments from Intel – marking one of the largest investments ever in U.S. semiconductor manufacturing, which will create over 30,000 good-paying jobs and ignite the next generation of innovation,” said U.S. Secretary of Commerce Gina Raimondo. “This announcement is the culmination of years of work by President Biden and bipartisan efforts in Congress to ensure that the leading-edge chips we need to secure our economic and national security are made in the U.S.”

Intel CHIPS Act
Located in Hillsboro, OR, Intel’s nearly 500-acre Gordon Moore Park at Ronler Acres campus is home to its D1X development factory. (Credit: Intel Corporation)

 

Intel’s strategy is centered on three core elements – establishing process technology leadership, building a more resilient and sustainable global semiconductor supply chain, and creating a world-class foundry business – all of which align with the objectives of the CHIPS Act to promote semiconductor manufacturing and technology leadership in the U.S.

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Intel currently uses 100% renewable electricity in fabs and other operations in the U.S., and recently redoubled its commitment to achieve 100% renewable electricity worldwide by 2030. In addition, Intel has aggressive goals of achieving net-positive water and zero waste to landfills by 2030, net-zero Scope 1 and 2 greenhouse gas (GHG) emissions by 2040 and net-zero upstream Scope 3 emissions by 2050. On March 19 and 20, Intel convened more than 100 companies across its value chain, along with nongovernmental organizations (NGOs) and representatives from government and academia, for a global Intel Sustainability Summit focused on defining a united approach to lower the industry’s collective environmental footprint.

Check out all the latest news related to economic development, corporate relocation, corporate expansion and site selection in the semiconductor industry.

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