Intel and Biden-Harris Administration Finalize $7.86 Billion Funding Award Under US CHIPS Act

SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov 26, 2024--

Intel Corporation and the Biden-Harris Administration announced today that the U.S. Department of Commerce and Intel have reached agreement on terms to award the company up to $7.86 billion in direct funding for its commercial semiconductor manufacturing projects under the U.S. CHIPS and Science Act. The award will support Intel’s previously announced plans to advance critical semiconductor manufacturing and advanced packaging projects at its sites in Arizona, New Mexico, Ohio and Oregon. Intel also plans to claim the U.S. Treasury Department’s Investment Tax Credit, which is expected to be up to 25% of qualified investments of more than $100 billion.

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“With Intel 3 already in high-volume production and Intel 18A set to follow next year, leading-edge semiconductors are once again being made on American soil,” said Pat Gelsinger, CEO of Intel. “Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security. Intel is deeply committed to advancing these shared priorities as we further expand our U.S. operations over the next several years.”

The announcement demonstrates the U.S. government’s confidence in Intel’s essential role in building a resilient, trusted semiconductor supply chain on domestic soil. Since the passage of the CHIPS and Science Act more than two years ago, Intel has announced plans to invest more than $100 billion in the U.S. to expand chipmaking and advanced packaging capacity and capabilities critical to economic and national security. The historic investments will support tens of thousands of jobs, strengthen U.S. supply chains, foster U.S.-based R&D, and help ensure American leadership in cutting-edge semiconductor manufacturing and technology capabilities.

“The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and Intel is expected to play an important role in the revitalization of the U.S. semiconductor industry,” said U.S. Secretary of Commerce Gina Raimondo. “Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award is catalyzing Intel to make one of the largest investments in semiconductor manufacturing in U.S. history.”

Press Kit:U.S. CHIPS Act Funding for Intel

The award follows the previously signed preliminary memorandum of terms and the completion of Commerce’s due diligence, in addition to the announced investment tax credit. The final total award is less than the proposed preliminary award due to a congressional requirement to use CHIPS funding to pay for the $3 billion Secure Enclave program.

U.S. Manufacturing and R&D Investments

The CHIPS Act award will directly support Intel’s investments at sites where the company develops and produces many of the world’s most advanced chips and semiconductor packaging technologies, including in Arizona, the Silicon Desert; New Mexico, the Silicon Mesa; Ohio, the Silicon Heartland; and Oregon, the Silicon Forest.

Intel was founded in the U.S. and has been innovating, investing and supporting global semiconductor manufacturing and R&D for more than 50 years. Intel currently employs approximately 45,000 people in the U.S.

Foundry Momentum and Technology Leadership

Intel is nearing completion of a historic pace of semiconductor node development to regain process technology leadership. Intel 18A, the company’s fifth process node in four years, is on track to launch in 2025 and continues to gain traction with customers. The company is finalizing a multiyear, multibillion-dollar commitment by Amazon Web Services to expand its existing partnership to include a new custom Intel® Xeon® 6 chip on Intel 3 and a new AI fabric chip on Intel 18A.

In September 2024, Intel won a manufacturing contract for up to $3 billion for the Secure Enclave program. This program is designed to expand the trusted manufacturing of leading-edge semiconductors for the U.S. government and builds on Intel’s relationship with the U.S. Department of Defense through the Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) and State-of-the-Art Heterogeneous Integrated Packaging (SHIP) programs.

Additionally, Intel reported key milestones in advanced semiconductor manufacturing with the completed assembly of the industry’s first commercial High Numerical Aperture (High NA) Extreme Ultraviolet (EUV) lithography scanner and receipt of an additional High NA tool installed at the company’s Hillsboro, Oregon, R&D site. This will enable Intel to lead cutting-edge advancements that will define next-generation chip manufacturing.

Workforce Development and Childcare Benefits

Alongside its manufacturing and technology investments, Intel has a long-standing history of investing in the American workforce by supporting education, training and benefits programs needed to create the jobs of the future. In 2022, for example, Intel announced a $100 million investment to expand semiconductor education, research and workforce training opportunities across the nation.

As part of Intel’s overall CHIPS award, $65 million is set aside to support the company’s efforts to create a more skilled semiconductor workforce. Intel plans to use $56 million to help train students and faculty at all education levels to support industry growth. This includes, for example, Intel’s recently launched U.S. registered apprenticeship program for manufacturing facility technicians.

The company will use $5 million of the dedicated workforce award to help increase childcare availability near Intel’s facilities. This is intended to support Intel’s recently announced plans to broaden childcare benefits and pilot innovative programs to support working families. The remaining $4 million of the $65 million award will support Intel’s participation in the CHIPS Women in Construction Framework, which Intel voluntarily committed to this year to help expand the construction workforce by increasing the participation of women and economically disadvantaged individuals.

Finally, Intel is partnering with the Midwest Microelectronics Consortium (MMEC) as its members receive funding for five technology development projects within the Microelectronics Commons initiative established under the CHIPS Act. These projects will engage more than 30 MMEC members representing organizations from industry, academia and government stakeholders to advance domestic microelectronic technology development to deliver solutions to strengthen the U.S.-based supply chain.

Forward-Looking Statements

This release contains forward-looking statements that involve a number of risks and uncertainties. Words such as "accelerate", "achieve", "aim", "ambitions", "anticipate", "believe", "committed", "continue", "could", "designed", "estimate", "expect", "forecast", "future", "goals", "grow", "guidance", "intend", "likely", "may", "might", "milestones", "next generation", "objective", "on track", "opportunity", "outlook", "pending", "plan", "position", "possible", "potential", "predict", "progress", "ramp", "roadmap", "seek", "should", "strive", "targets", "to be", "upcoming", "will", "would", and variations of such words and similar expressions are intended to identify such forward-looking statements, which may include statements regarding:

Such statements involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied, including those associated with:

Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this release and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business.

Unless specifically indicated otherwise, the forward-looking statements in this release do not reflect the potential impact of any divestitures, mergers, acquisitions, or other business combinations that have not been completed as of the date of this filing. In addition, the forward-looking statements in this release are based on management's expectations as of the date of this release, unless an earlier date is specified, including expectations based on third-party information and projections that management believes to be reputable. We do not undertake, and expressly disclaim any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.

About Intel

Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel’s innovations, go to newsroom.intel.com and intel.com.

© Intel Corporation. Intel, the Intel logo and other Intel marks are trademarks of Intel Corporation or its subsidiaries. Other names and brands may be claimed as the property of others.

A September 2024 photo shows a powerful crane on the Intel Ohio One construction site in Licking County, Ohio. Students at nearby Johnstown Monroe Intermediate School named the powerful crane "Ms. Armstrong,” paying homage to Ohio’s history in innovation, aviation and space. Standing more than twice as tall as the Statue of Liberty, the crane can lift 5.5 million pounds. (Credit: Intel Corporation)

MANILA, Philippines (AP) — A major political storm set off by a bitter feud between the Philippine president and the vice president is testing an Asian democracy that has long been troubled by rowdy politics, poor law enforcement and bareface impunity.

Just over two years ago, President Ferdinand Marcos Jr. and Vice President Sara Duterte won in landslide electoral victories on a campaign battle cry of national unity.

But their fragile alliance rapidly floundered over major differences, including their leanings toward either the United States or China, and Marcos’ rejection of the bloody crackdown on illegal drugs launched by his predecessor and Duterte’s father, Rodrigo Duterte.

The hostilities came to a head over the weekend when Sara Duterte told reporters she had arranged for Marcos, his wife and his cousin and speaker of the House of Representatives, to be assassinated if she were fatally attacked herself. Marcos went on TV and declared he was ready to fight back.

Here are the key figures in the unfolding political crisis:

Like her father, ex-President Rodrigo Duterte, the 46-year-old lawyer is a populist politician known for profanity-laced outbursts and temper that often clashed with official decorum. She made the political elites wary but endeared herself to ordinary people in a nation where name recall, political patronage and star-studded campaigns matter more than policy and governance platforms. As a provincial city mayor, Duterte successfully ran as Marcos' running mate in the 2022 race. But soon rifts appeared, including Duterte's opposition to congressional inquiries led by Marcos' allies into the thousands of deaths in the crackdown on drugs during Rodrigo Duterte's presidency 2016-2022. Also being investigated is her alleged misuse of funds while she served as education secretary.

When Duterte's chief of staff was temporarily detained by legislators after refusing to cooperate with the inquiry, Duterte made the threats in an online news conference against Marcos, his wife and House Speaker Martin Romualdez. She also accused Marcos’ family of responsibility for the 1983 assassination of an opposition leader, which sparked a 1986 pro-democracy uprising that ousted Ferdinand Marcos, the current president's father.

Marcos' resounding electoral victory in 2022 was regarded as one of the most stunning reversal of fortunes for his family, which had fled the Philippines following the 1986 army-backed “people power” revolt and returned years later. He inherited a battered economy, divisive politics and calls for him help prosecute his predecessor for the drug killings, which are being investigated by the International Criminal Court.

Rodrigo Duterte has accused Marcos of being a weak leader and a drug addict, accusations the president denied. The new course Marcos chartered for the Philippines broke away with Duterte, who built close ties with China and Russia and antagonized the U.S. Marcos broadened defense ties with Washington and began going public with China’s aggressive actions to claim territory in the disputed South China Sea.

In a sign of growing enmity, first lady Liza Araneta-Marcos disclosed her ill-feelings toward Sara Duterte in a radio interview in April. Duterte resigned two months later as Marcos' education secretary and head of an anti-insurgency body. She said last month that her relationship with Marcos had “gone so toxic” she has imagined “cutting his head.” Addressing the country on Monday, Marcos said he would fight the vice president’s “criminal plot” and uphold the rule of law. “The truth should not be summarily executed,” Marcos said in Tagalog, using a term associated with Rodrigo Duterte’s drug killings.

One of Asia’s most unorthodox contemporary leaders until his six-year term ended in 2022, Duterte, 79 and in frail health, has retained a sizable following and remains one of the president's harshest critics. In his decades-long political career, he carved a name for his profanity-laced outbursts and disdain for human rights and the West while nurturing close ties with Chinese President Xi Jinping and Russian leader Vladimir Putin. He has accused Marcos, his wife and the House speaker of financial anomalies and once warned Marcos could be ousted like his father if they attempt constitutional reforms to allegedly prolong their grip on power. In a news conference on Monday, Duterte asked the military how long it would continue to support a president “who’s a drug addict."

“There is a fractured governance … It is only the military who can correct it,” Duterte said, but clarified that he was not calling for a coup.

Widely speculated to be harboring plans to run for the presidency in 2028, House Speaker Martin Romualdez has been accused by Sara Duterte of trying to destroy her reputation to eliminate a future contender. The 61-year-old member of a wealthy clan in the central Philippines, he has played a crucial role as head of the lower chamber, which is dominated by Marcos' allies. He will be key to handling a possible impeachment complaint against the vice president for the alleged misuse of funds. Addressing the House on Monday, Romualdez stressed that Sara Duterte should be held accountable for the death threats against him, the president and his wife. “The gravity of such a confession demands accountability. It demands answers. It demands that we, as the representatives of the Filipino people, take a stand to protect our democracy from any and all forms of threats,” Romualdez said.

Associated Press video journalist Joeal Calupitan contributed to this report.

FILE- Former Philippine President Rodrigo Duterte speaks during a senate inquiry on the so-called war on drugs during his administration at the Philippine Senate Monday, Oct. 28, 2024, in Manila, Philippines. (AP Photo/Aaron Favila, File)

FILE - Philippine President Ferdinand Marcos Jr. listens during the 12th Association of Southeast Asian Nations (ASEAN) -U.S. Summit in Vientiane, Laos, Oct. 11, 2024. (AP Photo/Sakchai Lalit, File)

This combination photo shows Philippine Vice President Sara Duterte, left, in Quezon City, Philippines, Nov. 13, 2024, and Philippines President Ferdinand Marcos Jr. in Vientiane, Laos, Oct. 9, 2024. (AP Photo)

FILE - Philippine President Ferdinand Marcos Jr., center right, and Vice President Sara Duterte, daughter of former Philippine President Rodrigo Duterte, raise hands during the inauguration ceremony at National Museum on Thursday, June 30, 2022 in Manila, Philippines. (AP Photo/Aaron Favila, File)