US counters China with $19.5B investment in Intel's chip factories
In a historic move, the US Commerce Department is investing a staggering $19.5 billion in Intel to build and upgrade its semiconductor plants in four US states. This unprecedented deal, the largest of its kind in US chip manufacturing history, includes $8.5 billion in direct funding and potential loans of up to $11 billion. The investment is intended to accelerate the production of state-of-the-art logic chips, vital for advanced technologies such as artificial intelligence and military systems.
President Biden applauds Intel investment as gateway to future
While touring Intel's Arizona facilities, US President Joe Biden lauded the "landmark agreement" as a significant stride toward "reclaiming the future for America." He emphasized the need for geographically diverse and robust supply chains within the nation. Moreover, he predicted that by the end of this decade, nearly 20% of the world's top-tier chips will be manufactured in the US.
Biden condemns predecessor's neglect of chip production
Biden took the opportunity to censure his predecessor, Donald Trump, and his "allies" for their lack of support for the Chips and Science Act. This legislation, enacted by Biden in 2022 with a budget allocation of $50 billion, aims to revive domestic semiconductor production. At present, less than 10% of global chips are produced in the US, with none being among the most advanced.
Intel CEO emphasizes danger of unstable global supply chains
Intel's CEO, Pat Gelsinger, reiterated Biden's concerns, asserting that "fragile global supply chains pose a risk not only to our economy but also to our national security." "America will not concede leadership to our competitors," he said. In Arizona, Intel is building two new chip factories and enhancing an existing one, with plans to implement its latest 2-nanometer and 1.8-nanometer fabrication technologies by 2025.
Intel's significant investment to amplify US chip manufacturing
Over the next five years, Intel plans to invest over $100 billion to boost production capacity in Arizona, New Mexico, Ohio, and Oregon. The substantial investment is projected to generate nearly 10,000 manufacturing jobs. US Commerce Secretary Gina Raimondo hailed the funding for Intel as a "giant leap toward securing America's leadership in 21st-century manufacturing." Gelsinger added that federal backing would ensure that "Intel and the US remain at the cutting edge of the AI era."
