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The Biden administration will provide nearly $20 billion in grants and loans to Intel to bolster domestic semiconductor production capacity. In the preliminary agreement, Arizona will receive $8.5 billion in grants and up to $11 billion in loans for the construction of new plants and the renovation of existing plants.
This is one of the largest investments in the U.S. semiconductor manufacturing industry to date, and means that the United States will increase its share of cutting-edge chip production. According to the Semiconductor Industry Association, the United States’ share of global semiconductor production capacity has dropped from 37% in 1990 to 12% in 2020, aiming to reduce dependence on China and Taiwan. The spending also contributes to the Biden administration’s investment in Intel in the 2022 Chips and Science Act.
In addition to the Arizona project, funds will be used elsewhere, but officials did not disclose specific amounts. Intel is also expected to receive up to $3.5 billion in funding from the Department of Commerce to enhance safety at its Arizona factory.
(Source: Reuters Image source: freepik)
