The U.S. Department of Commerce announced Nov. 26 that it has finalized up to $7.86 billion in direct CHIPS and Science Act funding for Intel’s commercial semiconductor manufacturing and packaging projects under construction in Arizona, New Mexico, Ohio and Oregon.
“The CHIPS for America program will boost American innovation and technology and make our country more secure, and Intel is playing an important role in revitalizing the US semiconductor industry through its unprecedented investments in Arizona, New Mexico, Ohio and Oregon,” he said. US Commerce Secretary Gina Raimondo in a statement. “Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award enables Intel to drive one of the largest semiconductor manufacturing expansions in US history.”
Commenting on the company’s latest funding award, Intel CEO Pat Gelsinger said in a statement, “With Intel 3 already in high-volume production and Intel 18A to follow next year, cutting-edge semiconductors are once again being manufactured on American soil.
“Strong bipartisan support for restoring America’s technology and manufacturing leadership is driving historic investments that are critical to the nation’s long-term economic growth and national security,” Gelsinger continued. “Intel is deeply committed to advancing these shared priorities as we further expand our US operations over the coming years.”
Last March, the Commerce Department and Intel announced that they had reached preliminary terms of $8.5 billion in direct funding, roughly $600 more than what was ultimately awarded. However, the additional award in September of this year for an estimated $3 billion contract with the Department of Defense and the Department of Commerce for the Secure Enclave program required a more recent reduction in funding.
“The final total award is lower than the proposed preliminary award due to a congressional requirement to use CHIPS funding to pay for the $3 billion Secure Enclave program,” Intel said in a statement. The Secure Enclave program supports microelectronics manufacturing and ensures a domestic supply chain for advanced semiconductors for national security purposes, according to the DOD.
