– Intel has received up to $8.5 billion from the U.S. government to increase domestic chip manufacturing
– The CHIPS Act was passed to address supply chain bottlenecks and geopolitical tensions with China
– Intel plans to invest $100 billion in U.S. semiconductor manufacturing, creating over 30,000 jobs and sparking innovation
President Joe Biden signed the CHIPS and Science Act in August 2022 to increase domestic chip manufacturing in the U.S. Intel, a key player in this effort, has received up to $8.5 billion from an agreement with the Department of Commerce to shore up U.S.-based production. This initiative was driven by supply chain issues exacerbated by the pandemic and tensions with China, which dominate semiconductor production in Asia.
To revitalize U.S. industry and create jobs, Intel announced plans to invest $10 billion in a manufacturing facility near Columbus, Ohio, with further investments planned in Arizona, New Mexico, and Oregon. This move is part of a broader effort to reshore manufacturing and reduce supply chain bottlenecks by producing closer to the point of consumption. The goal is to create over 30,000 jobs and stimulate innovation in the semiconductor industry.
While these initiatives are a step in the right direction, industry experts believe they may not be enough to level the playing field with competitors like TSMC. Intel’s delayed manufacturing start date in Ohio, now set for 2027, highlights the challenges of bridging the gap between U.S. manufacturing capabilities and leading global producers. However, the overall investment from Intel is seen as a positive development, signaling a significant commitment to U.S. semiconductor manufacturing. Additional sites in Arizona, New Mexico, and Oregon are planned for future expansion.