The U.S. Department of Commerce finalized a CHIPS Incentives Program award of up to $7.865 billion in direct funding to Intel Corporation on November 26, 2024, supporting fabrication and advanced packaging of leading-edge chips at facilities in Arizona, New Mexico, Ohio, and Oregon. The award follows a preliminary memorandum of terms signed March 20, 2024, and completion of due diligence. Funds will be disbursed as Intel meets project milestones. The action was announced by the Commerce Department’s National Institute of Standards and Technology, which administers the CHIPS for America program.
What it means
The award is tied to Intel’s expected U.S. investment of nearly $90 billion by the end of the decade, part of a broader $100-billion-plus expansion plan. The funded projects are expected to support approximately 10,000 manufacturing jobs and 20,000 construction jobs across the four states. Technologies covered include Intel 18A and advanced packaging; Intel 3 is already in high-volume production, and Intel 18A is set to follow next year, according to Intel CEO Pat Gelsinger. Commerce Secretary Gina Raimondo said Intel “is playing an important role in the revitalization of the U.S. semiconductor industry through its unprecedented investments across Arizona, New Mexico, Ohio, and Oregon.”
The Intel award brings CHIPS for America’s total direct funding awarded to more than $19 billion of the over $36 billion in proposed incentives funding allocated to date across 20 states. The Commerce Department said semiconductor and electronics companies have announced over $450 billion in private investments since the start of the Biden-Harris Administration, with announcements across those 20 states expected to support over 125,000 jobs in total.
Key facts
- Award: up to $7.865 billion in direct funding to Intel Corporation under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities
- Preliminary memorandum of terms signed: March 20, 2024
- Project locations: Arizona, New Mexico, Ohio, and Oregon
- Technologies: Intel 18A and advanced packaging; Intel 3 in high-volume production
- Manufacturing jobs supported across four states: approximately 10,000 (according to the company and Commerce Department)
- Construction jobs supported across four states: 20,000 (according to the company and Commerce Department)
- Intel’s expected U.S. investment by end of decade: nearly $90 billion, part of a $100-billion-plus overall expansion plan (according to the company)
- CHIPS for America total direct funding awarded to date: over $19 billion of over $36 billion in proposed incentives funding allocated, across 20 states
- Private semiconductor and electronics investment announced since start of Biden-Harris Administration: over $450 billion
Source: U.S. Department of Commerce / National Institute of Standards and Technology news release (nist.gov)