American semiconductor giant Intel is set to receive $8.5 billion in government funding under the CHIPS and Science Act. This support aims to foster chip production in the U.S. in response to the rapid growth of the artificial intelligence (AI) industry and to compete with China.

Intel to receive $8.5 billion funding under the CHIPS Act

Over the next five years, Intel plans to invest more than $100 billion in the U.S. The company aims to establish facilities for chip production in Arizona, New Mexico, Ohio, and Oregon.

Additionally, Intel has the right to receive up to 25% investment credit from the U.S. Treasury Department for its investments. Intel CEO Pat Gelsinger stated, “Today is a significant day for America and Intel. The digital revolution is driven by AI, and every digital thing needs semiconductors.”

Intel’s investments are projected to create over 10,000 jobs in the U.S. and approximately 20,000 construction jobs, as well as supporting around 50,000 indirect jobs. President Joe Biden is expected to announce the deal during his visit to Intel’s Ocotillo campus in Chandler, Arizona.

The substantial funding Intel receives under the CHIPS Act will strengthen the U.S.’s position in global chip production and create new job opportunities in the technology sector, leading to both economic and technological advancement.

This initiative contributes to the U.S.’s aim to increase its global share in chip production and play a significant role in the advancements of artificial intelligence. Intel’s new funding and expansion plans could have major impacts on both the U.S. economy and the global technology market.

What do you think about Intel’s and the U.S. government’s joint efforts? How will they affect competition and innovation in the semiconductor industry? Share your thoughts in the comments section below.