Intel Corporation today announced it will receive up to $8.5 billion in direct funding through the CHIPS and Science Act, including for the company’s new semiconductor factories in Ohio.
Overseen by the U.S. Department of Commerce, the CHIPS Act funding aims to increase U.S. semiconductor manufacturing and R&D capabilities.
“Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor innovation,” Intel CEO Pat Gelsinger said in a press release. “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.”
The funding also supports Intel’s semiconductor projects in Arizona, New Mexico, and Oregon. Intel is spending $100 billion over five years to expand U.S. chipmaking capacity.
Emerging tech hubs have been growing as new hubs for chip manufacturing, and Intel has already committed $28 billion in New Albany. Dubbed Ohio One, this Intel campus is expected to create 3,000 full-time jobs and support tens of thousands of jobs with suppliers and partners. Intel says its supplier footprint has grown from about 150 Ohio suppliers when the project was announced to more than 350 suppliers across 47 counties. The project is expected to be completed in 2026.
Construction progress at Intel's Ohio One campus. Image source: Intel
“Thank you Ohio!,” Emily Smith, Intel’s Community Relations Director in Ohio, wrote on LinkedIn. “While we have been building our Ohio One campus, you’ve been building opportunities with us through education initiatives, building resilient growth through supply chain and business partnerships and building greater prosperity through community engagement and volunteer opportunities. Together, we are building a brighter future for what is becoming the #SiliconHeartland.”
Intel and the U.S. Department of Commerce tout the funding as an investment in America’s technology future.
“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,” U.S. Secretary of Commerce Gina Raimondo said in the joint press release with Intel. “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 also expects to benefit from a federal Investment Tax Credit of up to 25% on more than $100 billion in qualified investments and eligibility for federal loans up to $11 billion.
For more details, check out the full announcement from Intel.
