President Joe Biden chose to unveil this announcement during a visit to Arizona, underscoring his administration's focus on highlighting achievements in key battleground states ahead of the 2024 presidential election. Securing victory in Arizona in the upcoming election could prove crucial for Biden's reelection prospects, as he continues to work towards gaining support for his economic agenda, despite facing skepticism from some voters.
According to the White House statement, the Department of Commerce has reached a preliminary agreement with Intel to provide up to $8.5 billion in direct funding, along with $11 billion in loans under the CHIPS and Science Act. This funding will support the construction and expansion of Intel facilities across several states, including Arizona, Ohio, New Mexico, and Oregon, with the potential to create nearly 30,000 jobs and support tens of thousands of indirect jobs.
Commerce Secretary Gina Raimondo highlighted that this $8.5 billion direct funding announcement is the largest grant made under the 2022 CHIPS and Science Act. She emphasized that this investment will incentivize Intel to make over $100 billion worth of investments in semiconductor manufacturing in the United States, helping the country achieve its goal of producing 20 percent of the world's advanced chips by 2030.
Raimondo stressed the importance of reducing reliance on a small number of semiconductor factories in Asia, citing economic and national security concerns. She expressed confidence that the new funding will contribute to reshoring semiconductor manufacturing capabilities to the United States.
The announcement also mentioned Intel's plans to utilize the US Treasury Department's Investment Tax Credit and highlighted the creation of 10,000 new manufacturing roles and 20,000 construction jobs, with many being unionized positions.
Arizona, a key battleground state, was won by Biden in the 2020 election by a narrow margin of just 10,457 votes.
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