AuthorNathan Perez, RUSCA Blog Committee Intel has just received 8.5 Billion dollars in funding from the federal government due to Joe Biden's plan to bring semiconductor production back to the United States from Asia. President Biden plans to bring this back and produce 20% of the world’s leading-edge logic chips. This was passed in the CHIPS and Science Act and has awarded the largest amount of money given under the law.
Intel will invest this money in their projects in Arizona, New Mexico, Ohio, and Oregon. In Ohio, Intel had to delay their 20 billion dollar semiconductor project which is now expected to be completed in late 2026. Intel states, “The funds will support their ongoing work in Ohio and their projects in Arizona, New Mexico, and Oregon.” This is a huge step in the right direction and awards the supply chain with a vast amount of confidence. Intel plans to invest $100 billion in chip production in the US over the next five years. Those plans include five semiconductor process nodes where its most advanced is called 18A. Microsoft plans to produce a chip the software maker designed in-house. These advanced chips will help develop technologies like artificial intelligence and even can be used in military capabilities. Intel CEO Pat Gelsinger says the US will stay at the forefront of the artificial intelligence era as Intel hopes to build a resilient and sustainable semiconductor supply chain. This investment will create over 10,000 manufacturing jobs, 20,000 construction jobs, and 50,000 indirect jobs. All these jobs will help fuel the chip maker's supply chain. This includes 50 million to focus on developing the semiconductor while adding to the workforce. Intel has already spent 250 million on workforce development and building relationships with different communities. Intel will have to face competition as SK Hynix has agreed to invest 4 billion dollars into chip packaging located at Purdue University. Intel going forward will have to wait until these sites are complete but once they are it is “Smooth Sailing.” Intel wants their supply chain to grow, the US has helped them, now all that is left is to see how Intel can produce 20% of the leading chips by the end of the decade. Sources: https://www.manufacturingdive.com/news/sk-hynix-to-build-4-billion-advancing-packaging-fab-purdue-university/712256/ https://www.supplychainbrain.com/articles/39438-south-korea-company-invests-39b-in-new-indiana-chip-packaging-facility https://www.manufacturingdive.com/news/intel-awarded-8-5-billion-chips-and-science-act-funding/710792/ https://www.supplychaindive.com/news/intel-chips-funding-impact-us-semiconductor-supply-chain/711268/ Comments are closed.
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