Through the proposed funding, the US-based semiconductor company aims to advance its critical semiconductor manufacturing and research and development projects at its sites in Arizona, New Mexico, Ohio, and Oregon
Intel to receive up to $8.5bn in direct funding to advance its commercial semiconductor projects in the US. (Credit: Intel Corporation)
The US Department of Commerce and Intel have signed a non-binding preliminary memorandum of terms (PMT) for up to $8.5bn in direct funding through the CHIPS and Science Act to advance the latter’s commercial semiconductor projects in the US.
Under the PMT, the US-based semiconductor company will also have the option to draw upon federal loans of up to $11bn.
Moreover, Intel intends to leverage the US Treasury Department’s Investment Tax Credit (ITC), which is expected to cover up to 25% of eligible investments exceeding $100bn over a span of five years.
Through the funding, Intel will advance its critical semiconductor manufacturing and research and development projects at its sites in Arizona, New Mexico, Ohio, and Oregon.
Intel CEO Pat Gelsinger said: “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.”
The proposed financing will also support Intel’s previously announced plans to invest over $100bn in the US over five years to expand the country’s chipmaking capacity.
Intel’s commitment is also aimed at increasing the US’ capabilities critical to economic and national security and the expedition of emerging technologies including artificial intelligence (AI).
Furthermore, the semiconductor company’s investments will generate over 10,000 company jobs and about 20,000 construction jobs. It will also support more than 50,000 indirect jobs with suppliers and supporting industries.
US Secretary of Commerce Gina Raimondo said: “With this agreement, we are helping to incentivise over $100bn 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.”
Last month, Intel launched Intel Foundry as a more sustainable systems foundry business tailored for the AI era with an aim to establish leadership in technology, resilience, and sustainability.