Biden allocates $20 billion to Intel to increase chip production in the US
Kyiv • UNN
President Biden has provided Intel with nearly $20 billion in grants and loans to increase domestic production of semiconductor chips, including the construction of two new fabs and the modernization of an existing one in Arizona.
President Joe Biden has allocated nearly $20 billion in grants and a position to Intel, the largest expenditure by the US government to subsidize the production of advanced chips and increase the company's domestic production of semiconductor chips. Reuters reports UNN.
Details
Biden announced a preliminary agreement to provide $8.5 billion in grants and up to $11 billion in loans to Intel in Arizona, where part of the funds will be used to build two new plants and modernize an existing factory.
The US President said that these investments "will bring 40 years of advanced semiconductor manufacturing back to America.
Biden said that if chips are going to be invented in America, "they have to be made in America," adding that the investment will "transform the country.
Addendum [1
Commerce Secretary Gina Raimondo called it one of the largest investments in semiconductor manufacturing in the United States.
Historical spending shows that the Biden administration is betting big on Intel as part of the CHIPS and Science Act of 2022, trying to boost semiconductor production in the country with $52.7 billion in funding.
Context
It could also help Biden, who is lagging behind Trump in voters' perception of his ability to manage the US economy, win Arizona again in the November presidential election. In 2020, the Democrat won by a narrow margin in the southwestern state.