Biden grants Intel a $8.5 billion grant for microchips

President Joe Biden announced a $8.5 billion grant to Intel on Wednesday in Arizona.

Several Intel projects in Arizona and three other states are funded by the CHIPS and Science Act, one of Biden's biggest legislative wins that passed Congress bipartisanly in summer 2022. Since applicant vetting takes time, the Biden administration has only awarded three CHIPS Act companies.

Law aims to boost domestic semiconductor chip manufacturing. Formerly a leader, the US now produces only 10% of the global supply and none of the most advanced chips needed for artificial intelligence.

According to Commerce Secretary Gina Raimondo, America's reliance on Asia for most cutting-edge chips is a “national security problem” that the CHIPS Act funding addresses.

According to the preliminary funding agreement announced Wednesday, the $8.5 billion grant and up to $11 billion in loans will help build, expand, or modernize Intel facilities in Arizona, Ohio, New Mexico, and Oregon. If Intel reaches milestones, the money will be distributed in phases.

In Chandler, Arizona, where Biden announced CHIPS, the funding is expected to support two new manufacturing facilities and the modernization of an existing one, creating 7,000 construction and 3,000 manufacturing jobs, according to the White House.