Mar 20, 2024 - Politics & Policy

Biden to announce $20 billion in funding for Intel chip factories

Biden and Intel CEO walking before a back-ho

President Biden and Intel CEO Pat Gelsinger arrive at a groundbreaking for a semiconductor manufacturing facility near New Albany, Ohio, in 2022. Photo: Gaelen Morse/Bloomberg via Getty Images

President Biden will announce $20 billion in grants and loans for Intel to expand its semiconductor production at a stop in Arizona on Wednesday, a move the administration claims will lead to 10,000 new jobs in the swing state.

Why it matters: Biden is heading into the 2024 election with a massive cash advantage over former President Trump.

  • He also has the power of the presidency — and billions of dollars in federal funds to release in crucial states.

Driving the news: Biden will flex those muscles in Chandler, Arizona, as he unwraps the biggest award in the $52 billion Chips and Science Act he signed into law in 2022.

  • It's all part of Biden's pitch to voters that his three signature legislative accomplishments — infrastructure, chips and green energy — will directly improve their financial standing and grow the broader economy.
  • He is using a three-day, three-state tour to make a series of policy and political pronouncements, including the launch of his "Latinos con Biden" on Tuesday.

By the numbers: In addition to the $8.5 billion in grants, Intel is eligible for up to $11 billion in loans from the Commerce Department.

  • Those awards, along with a separate tax credit from the Treasury Department, will lead to an estimated $100 billion in private investment from Intel.
  • The administration expects Intel will use the money to help build or expand facilities in Arizona, Ohio, New Mexico and Oregon and help add a total of 30,000 new jobs.

What they are saying: "This eight-and-a-half billion dollars will be the single biggest announcement of a grant to any chip's recipients," Commerce Secretary Gina Raimondo told reporters.

  • "Last month, I set an aggressive goal for the CHIPS program that America would produce roughly 20% of the world's leading-edge chips by the end of the decade," she said. "And this announcement is going to put us on track to meet that goal."
  • "Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor manufacturing innovation," said Intel CEO Pat Gelsinger.

Between the lines: Ohio — where one of the Senate's most embattled Democrats, Sen. Sherrod Brown, is fighting to hold onto his seat — is expected to gain an estimated 3,000 permanent and 7,000 construction jobs from Intel's new hubs.

  • "I'd be remiss if I didn't pause for a second to give credit to Ohio's own Senator Sherrod Brown, who is a fierce advocate for getting the Chips Act through Congress," Raimondo said.

Flashback: Leading up to the 2022 midterm elections, President Biden visited Syracuse, New York, to highlight Micron's plan to invest $100 billion over 20-plus years to build a "Megafab" semiconductor factory.

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