Mar 20, 2024 - Politics

Biden to announce $20 billion for Intel expansion

President Biden and another man waving in front of construction equipment.

President Biden and Intel CEO Pat Gelsinger at a groundbreaking in Ohio in 2022. Photo: Gaelen Morse/Bloomberg via Getty Images

In Chandler today, President Biden will announce nearly $20 billion in grants and loans for Intel to expand its semiconductor production.

Why it matters: The Biden administration claims the investment will lead to 10,000 new Arizona jobs, further cementing metro Phoenix as one of the nation's epicenters for chips manufacturing.

The big picture: This is the latest in a string of major public and private chips investments in Arizona.

  • Since January 2020, Arizona has attracted more than 35 semiconductor company expansions, representing more than 13,000 jobs and $65 billion in investment, according to the Arizona Commerce Authority.

Driving the news: Biden will announce $8.5 billion in grants for Intel — the largest award from the $52 billion in the CHIPS and Science Act that he signed into law in 2022.

  • The company is also eligible for up to $11 billion in loans from the Commerce Department.

Zoom in: Those awards, along with a separate tax credit from the Treasury Department, will trigger an estimated $100 billion in private investment from Intel across the country.

  • In total, the administration expects Intel to use the federal money to help build or expand facilities in Arizona, Ohio, New Mexico and Oregon for a total of 30,000 new jobs.

What they're saying: Intel CEO Pat Gelsinger called it a "defining moment" for "the next great chapter of American semiconductor manufacturing innovation."

The intrigue: Biden is heading into the 2024 election with a massive cash advantage over former President Trump — and billions of dollars in federal funds to announce in crucial swing states like ours.

Go deeper

Editor's note: The headline on this story has been corrected to reflect that Biden announced grants for Intel's expansion. (He did not announce the expansion.)

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