Intel and the US Department of Commerce have signed a non-binding preliminary memorandum of terms (PMT) for up to $8,5-billion in direct funding to Intel for commercial semiconductor projects under the CHIPS and Science Act.

CHIPS Act funding aims to increase US semiconductor manufacturing and research and development capabilities, especially in leading-edge semiconductors.

Intel is the only American company that both designs and manufactures leading-edge logic chips.

The proposed funding would help advance Intel’s critical semiconductor manufacturing and research and development projects at its sites in Arizona, New Mexico, Ohio and Oregon, where the company develops and produces many of the world’s most advanced chips and semiconductor packaging technologies.

“Today is a defining moment for the US and Intel as we work to power the next great chapter of American semiconductor innovation,” says Intel CEO Pat Gelsinger. “AI is supercharging the digital revolution and everything digital needs semiconductors.

“CHIPS Act support will help to ensure that Intel and the US stay at the forefront of the AI era as we build a resilient and sustainable semiconductor supply chain to power our nation’s future.”

Together, the CHIPS Act proposed funding and Intel’s previously announced plans to invest more than $100-billion in the US over five years constitute one of the largest public-private investments ever made in the US semiconductor industry. The investment will create thousands of new company positions and construction jobs, foster US-based R&D, strengthen U.S. supply chains, and help ensure American leadership in leading-edge semiconductor manufacturing and technology capabilities.

Under the PMT, Intel would also have the option to draw upon federal loans of up to $11-billion. Intel also plans to claim the US Treasury Department’s Investment Tax Credit (ITC), which is expected to be up to 25% of qualified investments of more than $100-billion over five years. T

Intel’s strategy is centered on three core elements – establishing process technology leadership, building a more resilient and sustainable global semiconductor supply chain, and creating a world-class foundry business – all of which align with the objectives of the CHIPS Act to promote semiconductor manufacturing and technology leadership in the US.

In addition to its significant investments to expand US manufacturing capacity, Intel is on track to deliver five semiconductor process nodes in four years and expects to return to process technology leadership by 2025 with Intel 18A. Intel recently announced an extended process technology roadmap that adds the more-advanced Intel 14A to the company’s leading-edge node roadmap, in addition to several specialised node evolutions.

Intel Foundry brings together Intel’s Technology Development, Global Manufacturing and Supply Chain, and foundry customer service and ecosystem operations, enabling all the critical components customers need to design and manufacture chips for a new era of AI-driven computing.

Intel Foundry offers full-stack optimisation from the factory network to software, and enables customer readiness for Intel process and packaging designs with broad intellectual property and electronic design automation support from ecosystem partners.

Featured picture: Intel CEO Pat Gelsinger and US president Joe Biden