Biden Administration and Intel Forge Landmark $19.5 Billion Deal to Boost U.S. Chip Manufacturing
In a groundbreaking move, the Biden administration has announced a strategic partnership with tech giant Intel, funnelling up to $8.5 billion in direct funding and $11 billion in loans. This massive infusion of capital is earmarked for developing state-of-the-art computer chip manufacturing facilities across Arizona, Ohio, New Mexico, and Oregon. Intel has pledged that this new wave of funding, coupled with its expansive investments, will generate a remarkable 30,000 jobs in the manufacturing and construction sectors.
12:34 PM EDT, March 20, 2024
President Joe Biden is poised to spotlight this colossal investment during his upcoming visit to Intel's campus in Chandler, Arizona, signalling the initiative's pivotal role in the forthcoming election cycle. With Arizona positioned as a critical battleground state, the administration is keen on broadcasting its economic achievements. President Biden has often voiced concerns that the merits of his economic policies are not sufficiently recognized by the electorate, suggesting that broader awareness could bolster his support base.
This financial commitment stems from the bipartisan CHIPS and Science Act, a legislation championed by Biden in 2022 designed to pump $200 billion into the U.S. semiconductor industry. The act aims to fortify domestic chip production, a strategic move to curb the U.S.'s reliance on foreign manufacturers and mitigate national security and economic vulnerabilities.
Commerce Secretary Gina Raimondo outlined the agreement's ambitions, projecting the U.S.'s capacity to produce 20% of the world's most advanced semiconductor chips by 2030, a significant leap from its current output. "Leading-edge chips are the cornerstone of our innovation ecosystem," Raimondo emphasized, underlining the critical need for domestic manufacturing capabilities in artificial intelligence and military systems.
The announcement comes at a crucial time, as the 2024 presidential campaign heats up, with Biden directly countering former President Donald Trump's economic narratives. Intel's project, buoyed by the administration's funding and its investment exceeding $100 billion over the next five years, promises to create 10,000 in-house jobs and approximately 20,000 construction positions, along with supporting over 50,000 indirect jobs.
