Intel Corporation and the Biden-Harris Administration announced today that the U.S. Department of Commerce and Intel have reached an agreement on terms that will provide Intel with up to $7.86 billion in direct funding for its commercial semiconductor manufacturing projects under the U.S. CHIPS and Science Act.


The funding will support Intel's previously announced plans to advance critical semiconductor manufacturing and advanced packaging projects in Arizona, New Mexico, Ohio and Oregon. Intel also plans to apply for the U.S. Treasury Department’s investment tax credit, which is expected to be available up to 25% of qualified investments exceeding $100 billion.

"Intel 3 process has begun high-volume production, Intel 18A will enter production next year, and cutting-edge semiconductors will once again be manufactured here in the United States," Intel CEO Pat Gelsinger said. "Strong bipartisan support for restoring America's technology and manufacturing leadership is driving historic investments critical to America's long-term economic growth and national security. Intel is deeply committed to advancing these shared priorities, and we will further expand our presence in the United States in the coming years."

This statement demonstrates the U.S. government’s confidence in Intel’s important role in building a resilient and trustworthy semiconductor supply chain here in the United States. Since passage of the CHIPS and Science Act more than two years ago, Intel has announced plans to invest more than $100 billion in the United States to expand chip manufacturing and advanced packaging capabilities critical to the economy and national security. These historic investments will support tens of thousands of jobs, strengthen U.S. supply chains, promote U.S.-based research and development, and contribute to the U.S. economy and national security.

"The CHIPS USA program will inject new vitality into American technology and innovation, making our country more secure - and Intel is expected to play an important role in revitalizing the U.S. semiconductor industry," said U.S. Commerce Secretary Gina Raimondo.

In addition to the investment tax credits already announced, the award follows the previously signed memorandum of preliminary terms and completion of Department of Commerce due diligence. Because Congress required CHIPS funds to be used to pay for the $3 billion Secure Enclave program, the final award total was less than the proposed initial award.

CHIPS Act awards will directly support Intel's investments in the facilities where it develops and produces many of the world's most advanced chip and semiconductor packaging technologies, including the Silicon Desert in Arizona, Silicon Mesa in New Mexico, the heart of Silicon Valley in Ohio, and the Silicon Forest in Oregon:

New Mexico: Intel’s advanced packaging site in the United States

Ohio: Intel's new cutting-edge manufacturing site

Oregon: Intel Semiconductor Research and Development Center

Founded in the United States, Intel has been innovating, investing in and supporting global semiconductor manufacturing and R&D for more than 50 years.

Foundry Momentum and Technology Leadership

Intel is about to complete its historic semiconductor node development and regain its leadership in process technology. Intel 18A is the company's fifth process node in four years and is expected to launch in 2025 and will continue to gain traction with customers. The company is finalizing a multi-year, multi-billion dollar commitment with Amazon Web Services to expand existing partnerships to include new custom Intel Xeon 6 chips on the Intel 3 platform and new AI architecture chips on the Intel 18A platform.

In September 2024, Intel won a manufacturing contract of up to US$3 billion for the Secure Enclave program. The program is designed to expand trusted manufacturing of cutting-edge semiconductors for the U.S. government and builds on Intel’s relationship with the U.S. Department of Defense through the Rapid Assurance Microelectronics Prototyping-Commercial (RAMP-C) and state-of-the-art Heterogeneous Integrated Packaging (SHIP) programs.

Additionally, Intel reported important milestones in advanced semiconductor manufacturing: the completion of the assembly of the industry's first commercial high numerical aperture (HighNA) extreme ultraviolet (EUV) lithography scanner and the receipt of another high numerical aperture tool for installation at the company's Hillsboro, Oregon, research and development site.

Workforce Development and Childcare Benefits

In addition to its investments in manufacturing and technology, Intel has a long history of investing in the American workforce by supporting the education, training and benefits programs needed to create the jobs of the future.

As part of Intel’s total CHIPS award, $65 million is set aside to support the company’s efforts to create a more skilled semiconductor workforce. Intel plans to use $56 million to help train students and teachers at all levels of educational institutions to support industry development. This includes, for example, Intel's recently launched U.S. Registered Apprenticeship program for manufacturing facility technicians.

The company will use $5 million in dedicated workforce incentives to help increase child care services near Intel facilities. This is in support of Intel's recently announced plans to expand child care benefits and pilot innovative programs to support working families. The remaining $4 million of the $65 million award will be used to support Intel’s participation in the CHIPS Women in Construction Framework, which Intel has voluntarily committed to participate in this year to help expand the construction workforce by increasing the participation of women and economically disadvantaged individuals. These projects will engage more than 30 MMEC members representing industry, academia and government stakeholder organizations to advance domestic microelectronics technology and provide solutions that strengthen U.S. supply chains.