Biden announces $20bn plan for Intel to boost US chip production
4 Min Read
Joe Biden announces his most recent investment in Intel as he bashes rival Donald Trump.
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President Joe Biden speaks about an agreement to provide Intel with up to $8.5 billion in direct funding and $11 billion in loans for computer chip plants on Wednesday, March 20, 2024, at the Intel Ocotillo Campus. (AP)
US President Joe Biden disclosed his administration's biggest investment so far on March 20, which is almost $20 billion in grants and loans to be invested in Intel's domestic chip-making plants.
At the Intel Ocotillo Campus in Chandler, Arizona, Biden said, "Unlike my predecessor, I was determined to turn things around to invest in America -- all-American, all-Americans. And that's what we've been doing," referring to Trump while shedding light on his own "achievements" amid elections battle.
Biden believes that this investment in Intel facilities in four states, Arizona, Ohio, New Mexico, and Oregon would set the United States to produce 20 percent of the world's leading-edge chips by the end of the decade.
Further bashing Trump, Biden added, "My predecessor would let the future rebuild in China and other countries, not America, because it may be cheaper."
Almost $20 billion to Intel
The White House announced that the deal with Intel would give $8.5 billion in direct funding, along with $11 billion in loans under the CHIPS and Science Act.
Before the announcement, US Commerce Secretary Gina Raimondo informed reporters that the expected $8.5 billion is the largest of any grant made so far under the $52.7 billion 2022 legislation.
She added that this money will prompt Intel to make more than $100 billion worth of investments, which will be one of the largest investments ever in US semiconductor manufacturing.
"We rely on a very small number of factories in Asia for all of our most sophisticated chips. That's untenable and unacceptable," Raimondo stated, adding, "It's an economic security problem. It's a national security problem. And we're going to change that."
Read more: Google interfered 41 times for past 16 years in US elections: Study
Tax policies that benefit the pro-Zionism companies
The White House further revealed that Intel is also set to use the US Treasury Department's Investment Tax Credit of up to 25% on some capital expenditures, which would remarkably elevate the amount of financial support it gets from the US government.
This tax credit is related to a different Biden administration policy initiated in 2022, the Inflation Reduction Act.
Biden's National Economic Advisor, Lael Brainard, informed reporters that "Intel's investment is an exciting part of America's comeback story, with leading-edge semiconductor manufacturing coming back to America for the first time in 40 years."
She added that this new funding will pave the way for 10,000 new manufacturing jobs and another 20,000 construction jobs, many of which are unionized.
Guess who else is funding Intel for genocide
Tech giant Intel was awarded a massive $3.2 billion grant by the Israeli occupation government as part of a larger $25 billion initiative to expand its chip manufacturing facility located between "Tel Aviv" and Gaza, both parties said on December 26.
This substantial investment was confirmed following an announcement by Prime Minister Benjamin Netanyahu in June last year.
The announcement was made as the Israeli economy has been struggling with unprecedented challenges due to the ongoing war in Gaza.
Intel's CEO, Pat Gelsinger, revealed in December before this announcement that 17% of the company's 20,000-strong workforce were on reserve duty in "Israel".
The grant, as reported by Reuters, is expected to fund approximately 12.8 percent of the total investment in the "Kiryat Gat" facility, with the funds set to be paid over four years based on specific milestones.
Intel's commitment also extends to procuring goods and services worth 60 billion shekels (around $16.6 billion) from Israeli suppliers over the next decade.
