Intel receives $20 billion to expand semiconductor facilities

WASHINGTON (CN) — The federal government is awarding nearly $20 billion of grants and loans to Intel Corp. to construct and expand semiconductor facilities in Arizona, Ohio, New Mexico and Oregon, to create 30,000 jobs.

President Joe Biden will announce the funding Tuesday at an Intel facility in Chandler, Arizona.

Intel will receive $8.5 billion in grant money and $11 billion in loans through the CHIPS and Science Act. Commerce Secretary Gina Raimondo said it is the largest single announcement to any recipient of funding under the law.

“Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor manufacturing innovation,” Intel CEO Pat Gelsinger said in a news release. “AI is supercharging the digital revolution and everything digital needs semiconductors."

The facilities produce and develop semiconductors, which are used in items ranging from cell phones to refrigerators to satellites. Raimondo started the year with a goal of producing 20% of the world’s semiconductor chips by 2030.

“Leading edge chips are the core of our innovation system,” she told reporters Monday.

The money will boost $100 billion in investments by Intel in its facilities.

In Chandler, Arizona, the money will help construct two logic fabs and modernize an existing one, which will increase manufacturing capacity. It will create more than 3,000 manufacturing jobs and 7,000 construction jobs.

In New Albany, Ohio, funding will establish two new leading-edge logic fabs — the specialized factories where semiconductors are made — creating more than 3,000 manufacturing jobs and 7,000 construction jobs.

Intel also plans to modernize two fabs in Rio Rancho, New Mexico, creating 700 manufacturing and 1,000 construction jobs.

The money will also support an expansion and modernization of facilities in Hillsboro, Oregon.

Construction has already started on some of the projects. Officials declined to release site-specific funding information on Monday.

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