Pat Gelsinger, the Chief Executive Officer of Intel (INTC), has spent the past three years persuading Washington to make billions of dollars accessible to American chipmakers. On Wednesday, he received the news that his efforts had paid off, as his business would get up to $8.5 billion in grants from the United States in the years to come. It “will be the single biggest announcement of a grant to any chips recipient,” said Gina Raimondo, the Secretary of Commerce, when she made the announcement of the news.
Intel’s position as the focal point of President Joe Biden’s initiative to revive semiconductor production in the United States is strengthened by the preliminary agreement. Intel has stated that the funds will be utilized for a variety of new projects in the states of Arizona, Ohio, New Mexico, and Oregon, which together are receiving investments totaling more than one hundred billion dollars.
The agreement, which was announced on Wednesday, involves loans from the government of up to eleven billion dollars. While Intel is concentrating on increasing its manufacturing capacity in order to develop its most advanced chips, the chipmaker is also planning to submit a new tax credit claim for its capital expenses. This credit has the potential to add tens of billions of dollars to the company’s bottom line in the years to come.
According to statements made by Gelsinger to reporters prior to the announcement, “We’ve been the American champion for semiconductors… and as a result, we’ve really taken it upon ourselves to drive this legislation forward.” Gelsinger will accompany President Biden and Secretary Raimondo on a trip to the company’s campus in Chandler, Arizona, on Wednesday in order to spread the word about the significant news.
The expansion of that facility in Arizona will involve the construction of two manufacturing plants that are at the cutting edge of technology, as well as the modernization of an existing manufacturing facility. This investment, according to the White House, is the greatest private sector investment in the history of the state and will result in the creation of 3,000 permanent manufacturing jobs in the state over the next few years.
