**President Biden and Intel CEO Pat Gelsinger at Semiconductor Plant in Arizona**
President Biden was shown a semiconductor wafer by Intel CEO Pat Gelsinger during a visit to the company’s Ocotillo Campus in Chandler, Arizona on March 20. The image credit goes to Brendan Smialowski/AFP via Getty Images.
In Chandler, Arizona, President Biden unveiled a significant agreement with Intel. The deal involves providing the chipmaker with up to $8.5 billion in grants and an additional $11 billion in loans to establish semiconductor plants in four states. This initiative marks the largest project thus far in President Biden’s efforts to revitalize chip manufacturing in the United States.
The financial support stems from the CHIPS and Science Act, which was approved by Congress in 2022. This act aims to allocate over $52 billion towards projects that will significantly enhance U.S. production of the small electronic devices present in various products, ranging from cars and cell phones to military equipment.
The agreement with Intel, although in the preliminary stages and subject to due diligence for finalization, will involve the company injecting over $100 billion of its own funds into the projects. Intel anticipates offsetting this investment by potentially claiming up to $25 billion in investment tax credits, as highlighted by the company’s CEO, Pat Gelsinger, in discussions with the media.
Biden’s Focus on Job Creation Through Intel Investment in Arizona
With the Biden administration’s investment in Intel projects in Arizona, nearly 30,000 construction and factory jobs are set to be generated. These job opportunities exemplify the types of employment that Biden is advocating for as he seeks reelection. They stem from his approach of government involvement in the private sector, reviving an industrial policy that had waned in popularity over the years.
President Biden is seen boarding Air Force One at Harry Reid International Airport on March 19, heading to Phoenix from Las Vegas. The image credit goes to Brendan Smialowski/AFP via Getty Images. Biden’s recent announcement of funding came during his visit to Arizona and Nevada, crucial states for his reelection bid. He aims to shift the narrative that the economy thrived more under former President Donald Trump’s policies. Trump advocated for measures such as tariffs and tax cuts to boost American manufacturing. In contrast, Biden highlighted his investments in manufacturing, attributing the economic rebound to these initiatives. Speaking at Intel’s Ocotillo campus near Phoenix, Biden emphasized the departure from the trickle-down economics of his predecessor. He criticized the outsourcing of American jobs and the influx of imported goods during the previous administration. Biden’s focus on investment in Arizona reflects his strategy to bolster the economy and create a positive impact.
Biden Applauds Intel’s Investment in Arizona Chip Plants
Intel’s recent investment in chip plants in Arizona is set to revolutionize the semiconductor industry in the United States. These plants will produce a type of chip that is currently not manufactured within the country, marking a significant milestone in domestic chip production.
With this strategic move, Intel is paving the way for the United States to establish itself as a key player in cutting-edge logic chips. These chips, crucial for applications such as artificial intelligence and military systems, are currently exclusively produced overseas.
During a tour of the facility, President Biden expressed his amazement at the minuscule size of the fibers used in the chips, comparing them to the width of a strand of human DNA. He commended the efforts, stating, “Amazing to me. I’ll be darned. Well, you’re bringing the future back to America, man.”
**President Biden’s Visit to Intel Site in Ohio**
President Biden was seen strolling alongside Intel CEO Pat Gelsinger at an Intel facility close to New Albany, Ohio, on September 9, 2022. The image credit goes to Saul Loeb/AFP via Getty Images.
Commerce Secretary Gina Raimondo expressed her ambition for 20% of advanced chips to be manufactured in the U.S. by 2030, citing the Intel projects as instrumental in achieving this goal. She emphasized the need to reduce reliance on a limited number of Asian factories for sophisticated chips due to economic and national security concerns.
In a strategic move, Intel announced plans to construct two new plants in Chandler, Arizona, and New Albany, Ohio, in addition to upgrading an existing plant in Arizona.
Furthermore, Brad Gist, 30, collaborated with Liam Levinson, 28, in a semiconductor course lab at Chandler Gilbert Community College in Mesa, Arizona, on October 11, 2023. The credit for the image belongs to Caitlin O’Hara for NPR.
Intel’s CEO Expresses Concern Over the Scope of a Major Government Program
Intel is set to revamp two plants in New Mexico to transform them into specialized advanced packaging facilities, a capability not currently found in the United States. This initiative, highlighted by Raimondo in discussions with the press, is part of Intel’s broader plan. Additionally, Intel will enhance and update its research and development center located in Oregon.
Impact of Biden’s $50 Million Investment in Arizona Intel Facility
According to the White House, a significant deal has been struck involving a $50 million funding injection for training workers at the Arizona Intel facility. This agreement also includes commitments to utilize union labor and provide childcare services to employees.
Despite the substantial investment facilitated by the CHIPS legislation, Intel’s CEO, Gelsinger, expressed concerns that it might not suffice. He mentioned the possibility of a potential “CHIPS II” initiative that could require additional government support in the future.
Gelsinger emphasized that the initial CHIPS legislation may not fully address the industry’s needs for revitalization. Given the industry’s gradual shift away from the United States and the Western world over three decades, he stressed that a more sustained effort is necessary to restore its former prominence.
For more information, please visit our site 60time.com, and don’t forget to follow us on social media at Facebook.
