On Wednesday, President Joe Biden announced a deal to give Intel a maximum of $8.5 billion in direct financing and $11 billion in loans for computer chip factories across the nation. He praised the investment in Arizona, a key state in the political landscape, as a means to “revive the future of America.”

The Biden administration has predicted that the cash infusion should help the U.S. boost its global share of advanced chip production from zero to 20%. The Democratic president highlighted the investment while visiting Intel’s Ocotillo campus in Chandler, Arizona, where he inspected silicon wafers and expressed amazement at how thin the chips are.

During his post-tour comments, Biden shifted the focus to how his policies could affect the economy, aiming to turn his policy successes into a campaign advantage in the upcoming November election. Intel intends to make investments in facilities located in Arizona, Ohio, Oregon, and New Mexico, with a portion of the funds provided by the government going towards workforce training.

Biden stated, “Our investments are not limited to America, but also extend to investing in the American people.”

Gina Raimondo, the Commerce Secretary, announced that the agreement made by her department would enable the United States to manufacture 20% of the world’s cutting-edge chips by 2030, an increase from zero. Although the U.S. designs advanced chips, its reliance on foreign production has become a concern for national security and economic stability.

Raimondo emphasized the vital role that cutting-edge chips play in our innovation system, particularly in the areas of artificial intelligence and military technology. On a call with reporters, she stated that failure is not an acceptable outcome and stressed the importance of producing chips within the United States rather than just designing them.

The announcement of funding occurred during the intense 2024 race for the presidency. Biden has been informing voters that under his policies, there has been a revival in American manufacturing and employment. This statement directly goes against former President Donald Trump, who is expected to be the Republican nominee, and who implemented tariffs during his time in office and plans to do so again in order to safeguard American factory jobs from China.

During his tour, Biden expressed to Intel employees that they are effectively bringing the future back to America.

Biden won a close victory over Trump in Arizona during the 2020 election, with a difference of 49.4% to 49.1%.

Following the announcement, Biden traveled to Texas to be the main speaker at two campaign fundraising events in the Dallas area. The first event was fully booked and raised $2.5 million, according to one of the hosts, trial lawyer Russell Budd.

Budd informed Biden that he was the most popular attraction in Texas for the night.

According to a survey conducted in February by The Associated Press-NORC Center for Public Affairs, the majority of American adults are not supportive of Biden’s economic leadership, as only 34% approve. The current economic situation, with inflation reaching its highest level in 40 years in 2022, has negatively affected the Democrat’s popularity. In July 2021, his approval rating on the economy was 52%.

Intel’s initiatives will receive financial support from the 2022 CHIPS and Science Act, which was approved with the aid of the Biden administration. This legislation was passed during a time of unease about the potential economic consequences of a chip shortage caused by disruptions in Asian production due to the pandemic.

Lawmakers voiced their worries about China’s attempts to oversee Taiwan while advocating for investment. This is significant because Taiwan is responsible for over 90% of advanced computer chip manufacturing.

Senator Sherrod Brown, a Democrat seeking reelection in November, emphasized that Ohio will emerge as a top producer of semiconductors with the help of Intel, resulting in the creation of numerous employment opportunities. Despite voting for Trump in the previous two presidential races, Ohio will see Brown running against Cleveland-based businessman Bernie Moreno, who is backed by Trump, in the upcoming election.

On Wednesday, it was announced that the government will be providing support under the CHIPS law to Intel Corp. to make $100 billion in capital investments over the next five years. According to Intel CEO Pat Gelsinger, approximately one-fourth of this amount will be used for building and land, while the majority of it, around 70%, will go towards equipment. This marks the fourth and largest announcement made under the CHIPS law thus far.

“We view this as a pivotal moment for the United States, the semiconductor industry, and for Intel,” stated Gelsinger. He referred to the CHIPS Act as “the most crucial policy legislation in the industrial sector since World War II.”

During a call with journalists, the CEO of Intel expressed his desire for a follow-up to the 2022 legislation, which would offer more financial support for the industry.

According to Biden administration officials, computer chip companies are not investing enough in the domestic market without assistance from the government. With the support of Intel funding, it is estimated that 30,000 jobs will be created in the manufacturing and construction sectors. Additionally, the company intends to receive tax credits of up to 25% from the Treasury Department for eligible investments.

The company, located in Santa Clara, California, intends to utilize the financial support in four states. In Chandler, Arizona, the funds will contribute to the construction of two new chip factories and the upgrade of an existing one. In New Albany, Ohio, situated near the state’s capital of Columbus, the financing will establish two state-of-the-art plants.

The company plans to convert two of its factories in Rio Rancho, New Mexico into facilities for advanced packaging. Additionally, Intel will be upgrading its facilities in Hillsboro, Oregon.

The focus of the Biden administration includes prioritizing workforce training and providing affordable child care for agreements that aid companies. As part of the agreement with the Commerce Department, Intel will participate in local training programs and enhance its child care program reimbursement, among other initiatives.

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Washington was the location where Boak made their report.

Source: wral.com