Chandler, Arizona – President Joe Biden made a historic announcement on Wednesday, celebrating a groundbreaking agreement with Intel that will provide the company with up to $8.5 billion in direct funding and $11 billion in loans for computer chip plants around the country. This investment will not only boost the U.S. economy but also bring the future back to America.
The Biden administration is confident that this cash infusion will help the U.S. increase its global share of advanced chip production from zero to 20%. This is a significant step towards securing America’s position as a leader in technology and innovation. The President himself was awestruck by the thinness of the chips as he inspected them during his visit to Intel’s Ocotillo campus in Chandler, Arizona.
In his remarks after the tour, President Biden emphasized the impact his policies could have on the U.S. economy. This investment will not only create jobs, but it will also support workforce development, making it a win-win situation for both the economy and the American people.
Commerce Secretary Gina Raimondo, who played a crucial role in finalizing this deal, stated that this agreement will put the United States in a position to produce 20% of the world’s most advanced chips by 2030. This is a significant jump from the current zero percent. While the U.S. has been leading in chip design, its inability to produce them domestically has been a national security and economic risk. With this investment, the U.S. will not only design but also make chips in America.
The funding announcement comes at a critical time, with the 2024 presidential campaign heating up. President Biden has been highlighting his policies’ success in reviving U.S. manufacturing and creating jobs, directly challenging former President Donald Trump’s promises to bring back U.S. factory jobs from China.
However, the American public’s views on President Biden’s economic leadership have been mixed, with only 34% approving, according to a February poll by The Associated Press-NORC Center for Public Affairs. The high inflation rate in 2022 has hurt the President’s approval ratings, which were at 52% in July 2021. This investment in the U.S. chip industry is a step towards boosting the economy and creating more jobs, which could help improve the President’s approval ratings.
The investment in Intel’s projects will be funded in part through the bipartisan 2022 CHIPS and Science Act, which the Biden administration helped push through Congress. This law was necessary to address concerns after the pandemic about the U.S. economy’s reliance on chips made in Asia. It also addresses the national security risk of China’s control over Taiwan, which accounts for more than 90% of advanced computer chip production.
Senator Sherrod Brown, a Democrat from Ohio, highlighted the significant impact this investment will have on his state, saying that Ohio will become a global leader in semiconductor manufacturing. This is a crucial win for Ohio, which has voted for Trump in the past two presidential elections. Senator Brown, who is up for reelection this year, will face Republican businessman Bernie Moreno, who has the support of former President Trump.
The $100 billion capital investment by Intel over the next five years is expected to generate approximately 30,000 manufacturing and construction jobs. This is a significant boost to the U.S. job market, especially after the economic downturn caused by the pandemic. The company also plans to claim tax credits from the Treasury Department, further contributing to the U.S. economy’s growth.
Intel’s plans include building two new chip plants and modernizing an existing one in Chandler, Arizona, where President Biden visited. The funding will also establish two advanced plants in New Albany, Ohio, and turn two existing plants in Rio Rancho, New Mexico, into advanced packaging facilities. In addition, Intel will modernize facilities in Hillsboro, Oregon. This investment will have a far-reaching impact, creating jobs and boosting the economy in multiple states.
Intel’s CEO Pat Gelsinger called this a defining moment for the United States, the semiconductor industry, and for Intel. He also stated that the CHIPS Act is the most critical industrial policy legislation since World War II. This investment will not only create jobs but also ensure that the U.S. remains a leader in technology and innovation.
The Biden administration has made it clear that this investment in the U.S. chip industry would not have been possible without government support. This is a significant step towards reducing the U
