Jason Cohen
President Joe Biden’s administration announced on Wednesday it is pouring about $20 billion into American semiconductor titan Intel amid a stalled rollout.
Biden is set to visit Intel’s Arizona campus in Ocotillo, where he will unveil the Department of Commerce’s preliminary agreement with the chip giant to dole out $8.5 billion in direct funding as well as $11 billion in loans, according to a White House fact sheet. The company is building and growing its facilities in Arizona, Ohio, New Mexico and Oregon, thereby establishing close to 30,000 job opportunities, following a previous announcement of an operation delay related to the chips market.
“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,” Commerce Department Secretary Gina Raimondo stated on Wednesday. “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.”
#NEWS: Biden-Harris Administration Announces Preliminary Terms with @intel to Support Investment in U.S. Semiconductor Technology Leadership and Create Tens of Thousands of Jobs https://t.co/vazxbB4I7w
— U.S. Commerce Dept. (@CommerceGov) March 20, 2024
The Intel subsidies represent the fourth announcement of Chips Act funding and the largest thus far, according to the fact sheet.
“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. “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.”
Biden’s chips agenda is encountering significant setbacks as crucial manufacturing projects by giants, including Intel, are already experiencing delays.
LCY Chemical, Solvay, Chang Chun Group, KPPC Advanced Chemicals (Kanto-PPC) and Topco Scientific, which make chemicals and materials crucial for chips, are delaying construction of their plants in Arizona, according to Nikkei Asia, citing executives with knowledge of the situation. The companies are partially attributing Taiwan Semiconductor Manufacturing Co. (TSMC) and Intel’s delays as factors for their own setbacks.
Biden has prioritized domestic chip production as the U.S. tries to dominate the market over China. The countries are in a tech war, which is substantially related to chips because they are necessary for technology, including artificial intelligence.
TSMC’s negotiations with the Biden administration on subsidies have been ongoing for more than a year and half since the president signed the Chips and Science Act in 2022, which designates $53 billion to support the industry, according to The Wall Street Journal. Chip makers have asked for more funding than is available, leading the administration to have issues with making final funding decisions, Commerce Department Secretary Gina Raimondo said in February.
Intel has persisted in selling hundreds of millions of dollars worth of chips to Chinese telecommunications company Huawei, despite sanctions from the Biden administration to limit sales, Reuters reported. Intel’s license, granted under President Donald Trump’s administration, enables the giant to sell advanced semiconductors for use in Huawei laptops, and Biden has not moved to revoke it yet, irritating its competitors like Advanced Micro Devices (AMD).
Intel is the sole U.S. firm that designs and produces advanced logic chips, according to a Wednesday announcement by the company.
The White House and the Commerce Department did not immediately respond to the Daily Caller News Foundation’s request for comment.
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please
