A comprehensive look at Intel’s recent announcement and what it means for the company, the semiconductor industry, and the US economy.
On November 26, 2024, Intel and the Biden-Harris Administration announced that the U.S. Department of Commerce will award the company up to $7.86 billion in direct funding for its commercial semiconductor manufacturing projects under the U.S. CHIPS and Science Act. This1 award will support Intel’s previously announced plans to advance critical semiconductor manufacturing and advanced packaging projects at its sites in Arizona, New Mexico, Ohio, and2 Oregon. Intel also plans to claim the U.S. Treasury Department’s Investment Tax Credit, which is expected to be up to 25% of qualified investments exceeding $100 billion.
This announcement demonstrates the U.S. government’s confidence in Intel’s vital role in building a resilient, trusted semiconductor supply chain on American soil. Since the passage of the CHIPS and Science Act over two years ago, Intel has announced plans to invest more than $100 billion in the U.S. to expand chipmaking and advanced packaging capacity and capabilities critical to economic and national security. These historic investments will support tens of thousands of jobs, strengthen U.S. supply chains, foster U.S.-based R&D, and help ensure American leadership in cutting-edge semiconductor manufacturing and technology capabilities.
Key Parameters of the Announcement:
1. Products:
Intel’s investment will focus on the development and production of advanced chips and packaging technologies. The company is nearing completion of a historic pace of semiconductor node development to regain process technology leadership. Intel 18A, the company’s fifth process node in four years, is on track to launch in 2025 and continues to gain traction with customers. The company is also working on developing advanced packaging technologies, which allow for the integration of multiple chips in a single package to improve performance and energy efficiency.
2. Support:
The CHIPS Act funding will provide Intel with significant support in expanding its manufacturing operations in the U.S. Moreover, the company enjoys broad support from the Biden-Harris Administration, which sees Intel as a key player in strengthening the American semiconductor industry. This support is reflected in public statements by senior administration officials and government policies that encourage investment in the semiconductor industry.
3. Solutions:
Intel offers a wide range of technology solutions, from chips for personal computers and servers to solutions for artificial intelligence, 5G networks, and autonomous vehicles. The company emphasizes developing innovative solutions that meet evolving market needs, with a focus on performance, energy efficiency, and security.
4. Developers:
Intel invests heavily in supporting developers by providing them with tools, resources, and training programs. The company maintains an active developer community and encourages collaboration and the development of innovative applications based on Intel technologies.
5. Partners:
Intel works closely with a wide range of partners, including original equipment manufacturers (OEMs), software vendors, technology companies, and startups. These collaborations allow Intel to expand its product and solution offerings and reach new markets.
6. Foundry:
Intel is expanding its foundry business, offering chip manufacturing services to other companies. This allows Intel to leverage its advanced manufacturing capabilities and generate additional revenue.
In Conclusion:
Intel’s investment in the U.S. and the CHIPS Act funding represent a significant step in strengthening the American semiconductor industry. Intel is well-positioned to lead the industry forward, focusing on developing advanced technologies, strategic partnerships, and developer support. The company is expected to continue investing in the U.S., contributing to economic growth and job creation.
Cranes on the Intel Ohio One construction site in Licking County, Ohio (Credit: Intel Corporation)