Speaking today in Arizona, President Joe Biden announced a monumental $20 billion deal with Intel, part of the CHIPS Act, aimed at revitalizing the United States’ semiconductor industry. This massive investment includes $8.5 billion in grants and up to $11 billion in loans for Intel’s Arizona operations, where the funds will support the construction of two new factories and the modernization of an existing one. The initiative marks the government’s largest investment in chip manufacturing, aiming to bolster domestic production and reduce reliance on foreign semiconductor manufacturing, particularly from China and Taiwan.
Highlighting the importance of unions and the role of American workers in building the middle class, Biden emphasized the transformative impact of this investment on the semiconductor industry and its significance for the U.S. economy and national security. He underscored the shift away from the outsourcing model that led to a decline in the U.S.’s share of global semiconductor manufacturing capacity from 37% in 1990 to just 12% in 2020.
The CHIPS Act, which has already facilitated $1.5 billion to GlobalFoundries and $162 million to Microchip Technology, aims to secure future investments for major players like Samsung and TSMC. With over $70 billion in requests and $75 billion available in lending authority, this initiative is set to redefine the landscape of American manufacturing and innovation.
Biden’s speech not only reflected on the strategic importance of semiconductors, which power everything from consumer electronics to advanced military systems, but also on the broader objective of reindustrializing America to ensure economic resilience and global competitiveness. He recounted the journey from the initial discussions with Intel CEO Pat Gelsinger and the subsequent investments that led to the groundbreaking of new facilities, emphasizing the role of the CHIPS and Science Act in catalyzing these developments.
This deal is anticipated to create thousands of jobs, including 20,000 construction positions and 10,000 manufacturing jobs, with 3,000 of these in Phoenix alone, offering average salaries over $100,000 without necessarily requiring college degrees. Beyond job creation, the initiative promises to return the U.S. to the forefront of advanced chip manufacturing, targeting a 20% share of the world’s leading-edge chip production by the end of the decade.
In addition to revitalizing the manufacturing sector, the administration’s investment in Intel and the semiconductor industry underscores a commitment to clean energy and environmental sustainability, with Intel committed to net-zero greenhouse gas emissions by 2040.
President Biden’s vision extends beyond investment in infrastructure; it encompasses a holistic approach to fostering innovation, education, and workforce development in partnership with community colleges, universities, and the private sector. This strategy aims to ensure that the benefits of this technological advancement are widespread, offering new opportunities for high-paying jobs across the nation.
This ambitious project, reflective of Biden’s pledge to rebuild America’s manufacturing base, represents a critical step towards securing the U.S.’s technological sovereignty, economic prosperity, and competitive edge on the global stage.
