Biden Admin Planning To Provide Up To $8.5 Billion

Biden Admin Planning To Provide Up To $8.5 Billion

( – In August 2022, President Joe Biden signed the bipartisan Chips and Science Act into law. The measure aims to increase American semiconductor research, development, and production so the United States can reduce its reliance on China for such products. At the time, the US only made around 10% of the world’s supply. The 117th Congress and the Biden administration wanted to change that, earmarking $200 billion for investments into domestic semiconductor production. Recently, the government announced a tentative agreement for some of those funds.

What Investment?

On March 20, President Biden traveled to Chandler, Arizona, to announce that the Department of Commerce had reached an agreement with Intel. The administration agreed to give the tech company up to $8.5 billion in funding and $11 billion in loans to support the expansion and building of Intel facilities in four states — Arizona, Ohio, Oregon, and New Mexico.

The initiative will create about 30,000 jobs in America and even more indirect supporting jobs. The administration said it’s one step toward Biden’s vision of the United States reclaiming its leadership in chip manufacturing. They also said it will help the economy, strengthen supply chains, and protect national security.

Commerce Secretary Gina Raimondo announced that the deal would put America on track to produce 20% of the world’s supply of advanced chips within the next 6 years. Currently, that percentage is zero.

Raimondo said it’s not enough for the United States to merely design chips; “we have to make them in America.” She told reporters that this is especially true regarding the government’s military systems and artificial intelligence.

Intel released more details about the proposed agreement. In addition to the up to $8.5 billion in direct funding and up to $11 billion in federal loans for the company, Intel will also receive a tax credit of up to 25% on qualified investments.

The company said the funding will help its initiative to spend over $100 billion over 5 years in the US and create more than 80,000 jobs. According to a statement, Intel CEO Pat Gelsinger called the agreement a “defining moment for the US and Intel.” He said it will ensure that America stays “at the forefront of the AI era.”

Election Year Move

According to CBS News, Biden has expressed interest in tapping into his economic policies as part of his election campaign. This includes touting the investment plans this past week.

Announcing the plans in a battleground state like Arizona, which he did on March 20, could prove fruitful come November.

Copyright 2024,