President Joe Biden recently attended the groundbreaking ceremony for Intel’s new semiconductor manufacturing facility in New Albany, Ohio, signaling a major investment in the future of American technology. The Biden administration has awarded Intel up to $8.5 billion in funding through the CHIPS Act, with the possibility of an additional $11 billion in loans from the CHIPS and Science Act.
The goal of this substantial investment is to keep “America in the driver’s seat of innovation” by ensuring the production of cutting-edge semiconductors within the United States. While Intel has faced challenges and competition from rival companies in terms of revenue and market cap, it still remains a key player in the industry with its chip manufacturing and design capabilities.
The agreement between Intel and the White House is preliminary and nonbinding, but the company plans to utilize the CHIPS Act funds to expand its facilities and research centers in Arizona, Ohio, New Mexico, and Oregon. The Ohio fab, expected to begin production in 2027 or 2028, is anticipated to create thousands of new jobs in the region.
Intel CEO Pat Gelsinger has expressed excitement about the Ohio fab’s potential to produce AI chips for Intel as well as other semiconductor companies. This development comes in the wake of other tech giants such as GlobalFoundries, Microchip, BAE Systems, and Taiwan Semiconductor Manufacturing Company (TSMC) also receiving CHIPS Act funding for their respective projects.
TSMC, known for producing chips for Apple and AMD, is expected to use the funds for a new fab in Arizona. With these investments in semiconductor manufacturing, the United States is looking to strengthen its position in the global tech industry and drive future innovation.
“Zombie enthusiast. Subtly charming travel practitioner. Webaholic. Internet expert.”