USA: 20 Billion for Intel as Part of “Chip War”

A new chapter in the “chip war” has been opened. The struggle between the USA and China is being waged through tariffs and preferential treatment in the production of precious semiconductors, the main “engine” of new technologies.

The Biden administration has said it intends to provide nearly $20 billion in grants and loans to Intel Group to boost semiconductor production in the country. This is the largest government expenditure to subsidize chip manufacturing in the USA. Biden announced a preliminary agreement for $8.5 billion in grants and a second draft of up to $11 billion in loans. They are intended to build new businesses and develop existing businesses in Arizona, Ohio, New Mexico, and Oregon.

The funding is part of the Chip and Science Act passed in 2022. The document allocates $52.7 billion to revitalize semiconductor manufacturing in the United States.

“Semiconductors were invented in America and power everything from cell phones to electric cars, refrigerators, satellites, defense systems, and more,” the White House said in a statement. “But today the United States produces only about 10% of global supply – and none of the most advanced chips. Thanks to the Chip and Science Act, the situation is changing. Since the president took office, companies have announced more than $240 billion in investments to bring semiconductor manufacturing back to the United States. With current investment in chips, America will be producing nearly 20% of the world’s most advanced semiconductor chips by the end of the decade.”

This investment is expected to create about 30,000 jobs.