(Credit: Intel)
President Biden is promising Intel $8.5 billion in direct funding and another $11 billion in loans to build or renovate chip manufacturing plants in Arizona, Ohio, New Mexico, and Oregon, the White House announced Wednesday morning.
The $19.5 billion in funds are being awarded as part of the 2022 CHIPS & Science Act. The administration estimates the new facilities could create nearly 30,000 jobs.
With the funding, the White House expects Intel to build two new facilities in Chandler, Arizona, as well as update one existing plant. Intel will construct two new factories in New Albany, Ohio, and finish building two in Rio Rancho, New Mexico. It will also fund the renovation of facilities in Hillsboro, Oregon, according to the announcement.
The New Mexico locations are for chip "advanced packaging" or simultaneous assembly, which the White House says is "critical" for artificial intelligence and "the next generation of semiconductor technology."
The White House has repeatedly pointed out that while the US invented semiconductor chips, it only produces less than 10% of the world's chip supply today. Last month, the Biden administration announced it would pour $5 billion into US chip research and development by building a National Semiconductor Technology Center.
It's also barred advanced chip exports to China since 2022, citing China's use of chips for surveillance and military purposes as a key concern.
Rival AMD launched new processors earlier this year. And Nvidia claimed it reached a major breakthrough to speed up its chip production process last year, and announced Blackwell, a new larger chip designed for AI training, earlier this week.