US President Joe Biden and Commerce Secretary Gina Raimondo are set to announce a substantial award for Intel in Arizona next week in a move aimed at boosting domestic semiconductor production, reported Reuters based on inputs from sources. According to insiders, the multi-billion-dollar award is intended to support Intel's expansion of chip production within the United States.
Intel has reportedly extended invitations to customers and suppliers to attend the upcoming event.
This announcement comes as part of the efforts outlined in the 2022 CHIPS and Science Act, which earmarks $52.7 billion to bolster domestic semiconductor output. The funding includes $39 billion in subsidies for semiconductor production and $11 billion for research and development.
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The Biden administration has previously awarded $1.5 billion to GlobalFoundries, the world's third-largest contract chipmaker, for the construction of a new semiconductor production facility in Malta, New York, and the expansion of existing operations in Burlington, Vermont.
Additionally, the US Commerce Department disclosed plans to grant Microchip Technology $162 million in government assistance, enabling the company to triple the production of mature-node semiconductor chips and microcontroller units at two US factories.
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The move underscores a broader strategic objective to diminish dependence on China and Taiwan for semiconductor manufacturing. Over the years, the US share of global semiconductor manufacturing capacity has dwindled significantly, dropping from 37 per cent in 1990 to just 12 per cent in 2020, as per data from the Semiconductor Industry Association.
With Intel's grant, Arizona is poised to solidify its position as a key player in domestic chipmaking. This comes in the wake of Taiwan's TSMC's announcement of a new facility in Phoenix in 2020, and Intel's unveiling of plans to add two factories to its Chandler campus in the same state last year.
Furthermore, Intel's ambitions extend beyond Arizona, as the company has also announced plans to construct a $20 billion chipmaking complex in Albany, Ohio. However, recent reports suggest that the completion of construction is not anticipated until late 2026.
