U.S. government set to announce multi-billion dollar Intel grant in Arizona next week: Report

(Image credit: Intel)

U.S. President Joe Biden and Commerce Secretary Gina Raimondo are set to announce a substantial award for Intel in Arizona next week, according to a Reuters report. This award, part of the 2022 CHIPS and Science Act, aims to expand U.S. chip production, with Intel's grant being the largest yet under this act.  

The U.S. government has yet to confirm the amount of money that Intel will receive, but rumor has it that Intel's award package may exceed $10 billion. The funding includes grants and loans aimed to bolster Intel's competitive positions as well as U.S. semiconductor manufacturing. 

Intel's U.S. expansion plans are vast. The company has already opened its $3.5 billion advanced packaging facility in New Mexico, which will be crucially important for the company's next-generation products. In addition, the company is expanding its semiconductor manufacturing capacity in Arizona with two fab modules, which are set to cost $20 billion. Intel is also establishing its brand-new Silicon Heartland site in Licking County near Columbus, Ohio, which will require a total investment of $100 billion and an upfront investment (in the first fab modules) of approximately $20 billion. This project, expected to be completed by late 2026, further demonstrates the company's commitment to expanding semiconductor manufacturing in America. 

Intel has reportedly invited customers and suppliers to the Arizona event, which indicates the significance of this award for Intel and the U.S. administration. For Biden, Arizona is an important state in the upcoming presidential election. Meanwhile, Arizona is poised to become a major hub of manufacturing as both Intel and TSMC are building new fabs in the state and their supply partners are following.

The 2022 CHIPS and Science Act, with a total funding of $52.7 billion, includes $39 billion for semiconductor production and $11 billion for research and development. GlobalFoundries and Microchip Technology have already received significant awards under the act. GlobalFoundries was granted $1.5 billion to build a new facility in New York and expand operations in Vermont. Microchip Technology received $162 million to increase production at its U.S. factories.  

The overarching goal of the U.S. government funding initiatives is to decrease dependence on China and Taiwan, as the U.S. share of global semiconductor capacity has dwindled from 37% in 1990 to just 12% in 2020, Reuters notes.

Anton Shilov
Freelance News Writer

Anton Shilov is a Freelance News Writer at Tom’s Hardware US. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

  • ekio
    Great, they ripped us off for years abusing their market dominance to sell non evolving hardware at max price, and now they are facing the consequences of their behaviour, they get some magic tax payer money??!!
    That’s absolutely disgusting!!