President Biden is set to issue a multibillion-dollar award to Intel on Wednesday to expand its chip production in the United States, according to sources familiar with the decision. This move comes as the president continues to push his economic policies during a tour of the Southwest.
The announcement, which will take place in Phoenix, Arizona, is part of Mr. Biden’s $39 billion CHIPS and Science Act, aimed at strengthening the U.S. semiconductor industry and reducing dependence on technology manufactured in East Asia.
Expanding chip production has been a key focus for President Biden in efforts to compete with China and boost domestic manufacturing. The award for Intel is expected to be the first of several for chip makers, including Samsung, Micron, and the Taiwan Semiconductor Manufacturing Company.
While the White House is eager to accelerate semiconductor investments, some companies have faced challenges. T.S.M.C., for example, delayed initial manufacturing at its Arizona factory to 2025 due to a lack of expertise among local workers in installing sophisticated equipment.
To address these issues, the Biden administration is emphasizing the need to enhance apprenticeship programs to prepare a skilled workforce for factories in states like Arizona and Texas.
The funding is crucial for Intel and its CEO, Patrick Gelsinger, who has been working to restore the company’s technology leadership in manufacturing and strengthen the U.S. position in global chip production. Intel has faced setbacks in recent years, allowing competitors like T.S.M.C. and Samsung to gain ground in advanced chip manufacturing.
Gelsinger has launched an ambitious plan to introduce five new production processes in four years and shift Intel’s business model to compete in the foundry business of manufacturing chips designed by others.
The company has also embarked on an extensive expansion campaign, with new or upgraded factories in multiple locations around the world. Despite facing pressure from Intel’s board members to justify expenditures on these new facilities, Gelsinger remains committed to advancing the company’s position in the semiconductor industry.
The announcement of the award to Intel is expected to further solidify the company’s role in the U.S. semiconductor industry and contribute to President Biden’s efforts to strengthen domestic manufacturing and reduce reliance on foreign technology.
