Biden-Harris Administration and Intel forge partnership to advance U.S. semiconductor industry

The Biden-Harris Administration has made a landmark announcement regarding a partnership between Intel and the U.S. Department of Commerce, highlighting an agreement on a non-binding preliminary memorandum of terms (PMT) for up to $8.5 billion in direct funding. This funding is part of the CHIPS and Science Act’s initiative to revitalize U.S. semiconductor manufacturing and research capabilities, particularly focusing on leading-edge semiconductors. Intel, uniquely positioned as the only American company that designs and manufactures leading-edge logic chips, is at the forefront of this endeavor.

The CHIPS Act funding is set to support Intel’s ambitious semiconductor manufacturing and R&D projects across its facilities in Arizona, New Mexico, Ohio, and Oregon. These projects are crucial for the development and production of some of the world’s most advanced chips and semiconductor packaging technologies. Intel CEO Pat Gelsinger emphasized the significance of this support, stating, “CHIPS Act support will help to ensure that Intel and the U.S. stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”

This collaboration is part of a larger vision under the Dare Forward 2030 initiatives, aiming to secure America’s leadership in semiconductor technology. The combined efforts of the CHIPS Act proposed funding and Intel’s investment plans, exceeding $100 billion over five years, represent one of the most significant public-private partnerships in U.S. semiconductor industry history. The initiative is expected to generate thousands of jobs, enhance R&D within the U.S., and solidify American dominance in semiconductor manufacturing.

U.S. Secretary of Commerce Gina Raimondo hailed this partnership as a testament to President Biden’s commitment to rejuvenating American manufacturing. This monumental investment is poised to create over 30,000 jobs and spur a new wave of technological innovation, ensuring America’s competitive edge in the global semiconductor industry.

Intel’s strategy aligns closely with the CHIPS Act’s goals, focusing on establishing technology leadership, building a resilient global supply chain, and developing a world-class foundry business. With advancements such as delivering five semiconductor process nodes in four years and returning to process technology leadership by 2025, Intel is set to redefine the standards of semiconductor technology.