On September 9, 2022, U.S. President Biden listened to Intel CEO Pat Kissinger’s speech while attending the groundbreaking ceremony of Intel’s new semiconductor manufacturing plant in New Albany, Ohio, the United States.
Joshua Roberts | Reuters
the white house stated Intel The company received up to $8.5 billion in CHIPS Act funding as the Biden administration steps up efforts to bring semiconductor manufacturing to U.S. soil.
Intel may receive an additional $11 billion in loans from the Chip and Science Act passed in 2022. The award will be announced by President Joe Biden in Arizona on Wednesday.
U.S. Commerce Secretary Gina Raimondo told reporters that the funding would help “cutting-edge American-made semiconductors” maintain “U.S. dominance in innovation.” Intel and the White House said their agreement was non-binding and preliminary and could change.
Intel has long been a mainstay of the U.S. semiconductor industry, developing chips that power many personal computers and data center servers around the world.However, the company’s revenue eclipsed NvidiaArtificial intelligence chips take the lead, and their market value has been surpassed by competitors AMD and mobile phone chip makers Qualcomm.
Despite its decline relative to its peers, Intel remains in a unique position in the industry because in addition to designing processors, it also operates chip factories. AMD and Nvidia are fabless, meaning they design the chips and then send the computer files and staff to Taiwan British Semiconductor For the manufacture of equipment.
In recent years, TSMC has taken the lead in semiconductor manufacturing, so all of the world’s fastest processors are made in Taiwan.
That’s a big reason why Intel has long been considered one of the biggest beneficiaries of the CHIPS (Conducive Incentives to Produce Semiconductors) Act, which aims to provide nearly $53 billion in incentives for domestic chip technology measure. A key motivation behind the CHIPS Act is to encourage companies to build wafer fabs within the United States to prevent supply disruptions if China invades Taiwan.
Intel said it will use CHIPS Act funds for fabs and research centers in Arizona, Ohio, New Mexico and Oregon. The company previously announced plans to spend $100 billion on U.S. projects and facilities. Intel announced plans to catch up in leading manufacturing areas by 2026.
Intel’s Ohio fab will cost more than $20 billion, and Intel said it expects to begin production in 2027 or 2028. Intel is also expanding manufacturing operations in Arizona and New Mexico. Intel said the projects will create 20,000 jobs in fab construction and 10,000 jobs in chip manufacturing.
Intel CEO Pat Gelsinger said in an interview with reporters that the Ohio factory will produce artificial intelligence chips for Intel and may also produce artificial intelligence chips for other semiconductor companies.
“Driving by the Ohio factory,” Kissinger said. “There are tons of cranes and concrete work trucks building what we believe will be the premier large-scale manufacturing site, especially for artificial intelligence chips in the United States.”
GlobalFoundries FactoryMicrochip and BAE Systems have reportedly received CHIPS Act funds To the Semiconductor Industry Association.TSMC expects to receive CHIPS Act funding to build a wafer fab in Arizona apple and AMD chips.
About The Author
