Biden-Harris Administration Approves $7.9B in CHIPS Act Funding for Intel

The U.S. Department of Commerce announced on November 26 the finalization of up to $7.86 billion in direct funding from the CHIPS and Science Act to support Intel's commercial semiconductor manufacturing and packaging projects currently under construction in Arizona, New Mexico, Ohio, and Oregon.

“The CHIPS for America program will supercharge American innovation and technology and make our country more secure—and 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,” said U.S. Secretary of Commerce Gina Raimondo in a statement. “Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award is enabling Intel to drive one of the most significant semiconductor manufacturing expansions in U.S. history.”

Intel CEO Pat Gelsinger also commented on the funding, stating, “With Intel 3 already in high-volume production and Intel 18A set to follow next year, leading-edge semiconductors are once again being made on American soil.

“Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security," Gelsinger continued. "Intel is deeply committed to advancing these shared priorities as we further expand our U.S. operations over the next several years.”

In March, the Department of Commerce and Intel had announced preliminary terms for $8.5 billion in direct funding—approximately $600 million more than the finalized amount. The reduction in funding resulted from an additional $3 billion awarded in September for a contract with the Department of Defense and Commerce for the Secure Enclave program.

"The final total award is less than the proposed preliminary award due to a congressional requirement to use CHIPS funding to pay for the $3-billion Secure Enclave program," Intel explained in a statement. According to the Department of Defense, the Secure Enclave program aims to support the manufacturing of microelectronics and ensure a domestic supply chain of advanced semiconductors critical to national security.

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