Sat. Jul 20th, 2024

Biden to tout government investing $8.5B in Intel’s computer chip plants in four states

By 37ci3 Mar20,2024

WASHINGTON – The Biden administration has come to an agreement Intel provides With up to $8.5 billion in direct financing and $11 billion in loans for computer chip plants in Arizona, Ohio, New Mexico and Oregon.

President Joe Biden He plans to talk about the investment when he visits Intel’s campus in Chandler, Arizona, on Wednesday. decisive swing state in the November elections. He often said that not enough voters knew about his economic policies, and that if they did, more would support him.

Commerce Secretary Gina Raimondo The deal reached through his department would see the US produce 20% of the world’s most advanced chips by 2030, up from zero now. The United States develops advanced chips, but its inability to manufacture them domestically has emerged as a national security and economic risk.

“Failure is not an option – advanced chips are at the heart of our innovation system, especially when it comes to advances in artificial intelligence and our military systems,” Raimondo told reporters on a call. “We can’t just design a chip. We have to do them in America.”

The funding announcement comes in hot weather 2024 presidential campaign. Biden told voters that his policies were paying off A resurgence in US manufacturing and job growth. His message is a direct challenge to former President Donald Trump, the presumptive Republican nominee Raised tariffs while in the White House and wants to do it again, promising to protect US factory jobs from China.

Biden defeated Trump in Arizona in 2020 by a margin of 49.4% to 49.1%.

According to a February poll by the Associated Press-NORC Center for Public Affairs, US adults have a poor view of Biden’s economic leadership, with just 34% approving. The lingering effects of inflation, which hit a four-decade high in 2022, hurt Democrats, who approved of the economy at 52% in July 2021.

Intel’s projects would be funded in part through the bipartisan 2022 CHIPS and Science Act, which the Biden administration helped shepherd through Congress amid concerns that a loss of access to chips made in Asia after the pandemic could drag the U.S. economy into recession.

While pushing for investment, lawmakers expressed concern about China’s efforts to control Taiwan. More than 90% advanced computer chip manufacturing.

Ohio Senator Sherrod Brown, a Democrat running for re-election this year, emphasized that his state would become a “global leader in semiconductor manufacturing” because Intel would create thousands of jobs. Ohio has voted for Trump in the last two presidential elections, and Brown will face Republicans in November Bernie MorenoA Trump-backed businessman from Cleveland.

Wednesday’s announcement is the fourth and largest under the chip law and will allow Intel to invest $100 billion in capital over five years with government support. Intel CEO Pat Gelsinger said that about 25% of the total will cover construction and land, and about 70% will go to equipment.

“We see this as a watershed moment for the United States, the semiconductor industry and Intel,” said Gelsinger, who called the CHIPS Act “the most critical piece of industrial policy legislation since World War II.”

The Intel CEO told reporters on a call that he wants to see the 2022 law continue to provide additional funding to the industry.

Biden administration officials say computer chip companies won’t invest domestically on the scale expected without government support. Together, Intel’s funding will lead to 30,000 manufacturing and construction jobs. The company also plans to seek tax credits of up to 25% on qualifying investments from the Treasury Department.

The Santa Clara, Calif.-based company will use the funding in four different states. In Chandler, Arizona, the money will help build two new chip plants and modernize an existing one. The funding will build two flagship plants in New Albany, Ohio, just outside the state capital of Columbus.

The company will also convert its two plants in Rio Rancho, New Mexico to advanced packaging facilities. Intel will also modernize facilities in Hillsboro, Oregon.

The Biden administration has also prioritized workforce training and access to affordable childcare in contracts to support companies. Under the agreement with the Commerce Department, Intel will increase the reimbursement amount for the child care program, among other efforts, along with local training programs.

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By 37ci3

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