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.
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 amassive cash advantage over former President Trump — and billions of dollars in federal funds to announce in crucial swing states like ours.
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.)
