Intel and U.S. Department of Commerce Announce $8.5 Billion In Proposed Direct Funding Through The CHIPS Act

CHANDLER, AZ (March 20, 2024) —The Biden-Harris Administration announced that Intel and the U.S. Department of Commerce have signed a preliminary memorandum of terms (PMT) for up to $8.5 billion in direct funding to Intel for commercial semiconductor projects under the CHIPS and Science Act.

CHIPS Act funding aims to increase U.S. semiconductor manufacturing and research and development capabilities, especially in leading-edge semiconductors. The proposed funding would help advance Intel’s critical semiconductor manufacturing and research and development projects at its sites in Arizona, New Mexico, Ohio and Oregon, where the company develops and produces many of the world’s most advanced chips and semiconductor packaging technologies.

“Arizona has become a national leader in the semiconductor industry, in no small part due to Intel’s presence for over four decades,” said Governor Katie Hobbs. “With this critical CHIPS Act investment, I am excited that Intel is expanding its operation in Chandler, continuing to fuel our state’s success. We are leading America’s economic future because of our high-skilled workforce, dynamic economy, and innovative companies like Intel — an industry giant with its largest domestic manufacturing presence here in our state. Arizona is proud to have Intel as a partner as we continue working together to create jobs, protect our national security, and develop the cutting-edge advanced manufacturing economy.”

In 2021, Intel broke ground on its two new leading-edge fabs at the company’s Ocotillo campus in Chandler. Representing a $20 billion investment, the two new fabs will create over 3,000 new high-tech, high-wage jobs. With the new fabs, Intel’s Ocotillo Campus will house a total of six fabs.

“Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor innovation,” said Intel CEO Pat Gelsinger. “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.”

Together, the CHIPS Act proposed funding and Intel’s previously announced plans to invest more than $100 billion in the U.S. over five years constitute one of the largest public-private investments ever made in the U.S. semiconductor industry. The historic investment will create thousands of new company positions and construction jobs, foster U.S.-based R&D, strengthen U.S. supply chains, and help ensure American leadership in leading-edge semiconductor manufacturing and technology capabilities.

“There is no one who cares more about revitalizing American manufacturing than President Biden, and today’s announcement is a massive step towards ensuring America’s leadership in manufacturing for the 21st century. 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,” said U.S. Secretary of Commerce Gina Raimondo. “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.”

“This is huge news that will cement Arizona as a global hub for microchips and create a lot of great-paying jobs that don’t require a four-year degree,” said Senator Mark Kelly. “From Intel and the administration to our state and local economic development leaders and the City of Chandler, everyone worked hard together to get this done. Bringing microchip manufacturing back to America was the goal of my historic CHIPS Act, and today’s announcement is the biggest step we’ve taken toward making that a reality.”

“I was proud to lead our bipartisan CHIPS and Science Act into law – directly fueling Intel’s historic investment in Arizona and building lasting careers for Arizona families,” said Senator Kyrsten Sinema. “This investment is proof of how smart, responsible, bipartisan legislation delivers meaningful impact for Arizona as we lead our country to the future.” 

“Today’s announcement builds upon Intel’s capabilities, expanding innovation, opportunity and high-quality jobs in our community,” said Chandler Mayor Kevin Hartke. “These investments have spawned a unique ecosystem of semiconductor industry manufacturing, suppliers and innovators in Chandler.”

“We’re incredibly excited to celebrate this historic announcement,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “Since they began operations in Arizona in 1979, Intel’s steady growth represents the largest private investment in state history. With the help of the CHIPS Act, Intel’s expansion in Arizona is creating thousands of good-paying jobs, strengthening U.S. supply chain resiliency, and further cementing Arizona as the epicenter of semiconductor manufacturing and innovation. We’re grateful for Intel’s long-term commitment to Arizona, and for the strong support from the Biden Administration, Governor Hobbs, and all our partners that enabled this investment.”

Intel's strategy is centered on three core elements – establishing process technology leadership, building a more resilient and sustainable global semiconductor supply chain, and creating a world-class foundry business – all of which align with the objectives of the CHIPS Act to promote semiconductor manufacturing and technology leadership in the United States.

Intel is dedicated to advancing U.S. efforts to regain its leadership position in this vital industry through its investments to expand chipmaking capabilities and capacity. CHIPS Act proposed funding would support Intel’s investments in Arizona, the Silicon Desert; New Mexico, the Silicon Mesa; Ohio, the Silicon Heartland; and Oregon, the Silicon Forest.

Read Intel’s Arizona, the Silicon Desert Fact Sheet

With support from the CHIPS Act funding, Intel’s planned U.S. investments are expected to create more than 10,000 new permanent jobs at Intel and nearly 20,000 construction jobs, and they will indirectly support more than 50,000 jobs with suppliers and supporting industries.

To meet the growing demand for future semiconductor talent, Intel is driving innovative partnerships with government and academia to create a robust and diverse ecosystem of skilled semiconductor talent critical to the success of the entire semiconductor industry and the U.S. economy. Intel announced a $100 million investment in 2022 to expand semiconductor education, research and workforce training opportunities across the nation.

In 2022, Maricopa Community Colleges and Intel launched the Semiconductor Technician Quick Start Program, which works to scale the hiring of semiconductor technicians, and has trained over 600 people for careers in the semiconductor industry.