On Wednesday, President Joe Biden praised a deal to supply Intel with $8.5 billion in direct funding and $11 billion in loans for the construction of computer chip factories across the nation. He highlighted the investment being made in the critical state of Arizona, emphasizing that it will help “restore the future to America.”

The Biden administration foresees that this injection of funds will aid the U.S. in increasing its worldwide portion of advanced chip manufacturing from 0% to 20%. During his visit to Intel’s Ocotillo facility in Chandler, Arizona, the Democratic president emphasized the significance of this investment. He also marveled at the size of the silicon wafers and the thinness of the chips while inspecting them.

Following the tour, Biden discussed how his policies could affect the U.S. economy as he aims to leverage his policy successes for political gain before the November election. Intel intends to make investments in facilities located in Arizona, Ohio, Oregon, and New Mexico, and some of the allotted government funds will go towards enhancing workforce development.

Biden stated that the investment is not solely focused on America, but also on the American citizens.

Gina Raimondo, the Secretary of Commerce, announced that the agreement reached by her department will enable the United States to manufacture 20% of the world’s most sophisticated computer chips by 2030. This represents a significant increase from the previous amount, which was zero. While the US is involved in the design of advanced chips, the fact that they cannot be produced domestically has become a concern for both national security and economic reasons.

“According to Raimondo during a conference call with journalists, the production of cutting-edge chips is essential to our innovation system, particularly in the realms of artificial intelligence and military technology. We cannot simply design these chips- they must be manufactured within the United States.”

The announcement of funding coincided with the intensity of the 2024 presidential race. Biden has been informing voters that his initiatives have resulted in a revival of American manufacturing and increased employment opportunities. His statement directly contests former President Donald Trump, the expected Republican candidate, who implemented tariffs during his time in office and plans to do so again in order to safeguard US factory jobs from China.

A recent poll conducted by The Associated Press-NORC Center for Public Affairs in February found that only 34% of American adults approve of President Biden’s economic leadership. This approval rating has decreased from 52% in July 2021, likely due to the negative effects of inflation reaching its highest level in 40 years.

Intel’s initiatives will receive financial support from the 2022 CHIPS and Science Act, a bipartisan effort championed by the Biden administration to address concerns about potential economic repercussions due to limited access to microchips manufactured in Asia during the pandemic.

During the proposal for investment, legislators expressed worry about China’s attempts to dominate Taiwan, which is responsible for over 90% of the production of sophisticated computer chips.

Sherrod Brown, a Ohio representative from the Democratic party who is running for reelection this year, highlighted his belief that Ohio will emerge as a prominent figure in semiconductor manufacturing, thanks to Intel’s creation of numerous job opportunities. Ohio, which has supported Trump in the previous two presidential elections, will have Brown competing against Republican Bernie Moreno, a businessman from Cleveland endorsed by Trump, in November.

The government has made a large announcement on Wednesday in relation to the chips law. This is the fourth announcement and the biggest one yet. The support from the government is meant to assist Intel Corp. in making $100 billion worth of capital investments over the span of five years. This investment will include 25% for building and land, while 70% will be allocated for equipment, according to Intel CEO Pat Gelsinger.

Gelsinger stated that the CHIPS Act is a significant moment for the United States, the semiconductor industry, and Intel. He also referred to it as the most crucial legislation for industrial policy since World War II.

According to officials working for the Biden administration, computer chip companies would not be making the same level of investments within the country without assistance from the government. With the assistance of funding from Intel, approximately 30,000 jobs in manufacturing and construction would be created. Additionally, the company intends to seek tax credits from the Treasury Department for up to 25% of qualified investments.

The company located in Santa Clara, California intends to utilize the financial support across four states. Specifically, in Chandler, Arizona, the funds will go towards constructing two fresh chip manufacturing facilities and updating an existing one. Additionally, the funding will allow for the establishment of two state-of-the-art plants in New Albany, Ohio, located near the capital city of Columbus.

The company plans to convert two of its plants in Rio Rancho, New Mexico into advanced packaging facilities. In addition, Intel will update facilities in Hillsboro, Oregon.

Source: voanews.com