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Biden may unveil Intel chips award in Arizona next week, sources say

Figurines with laptops and cellphones are shown in front of Intel logo in this image shot, February 19, 2024

WASHINGTON, March 14 (mod1s) - President Joe Biden and Commerce Secretary Gina Raimondo intend to present next week in Arizona a multi-billion-dollar award for Intel (INTC.O), opens new tab to expand its chip manufacturing in the United States, two people familiar with the subject said on Thursday. 

Intel, which according to one of the sources also asked customers and suppliers to attend the event, refused to comment. 

The corporation has sought funding to support development ambitions in both Ohio and Arizona, a vital electoral swing state that Biden, who is running for re-election against Republican Donald Trump, expects to win in November.

Intel's award, a mix of grants and loans, will be the most significant to be rolled out so far from the 2022 CHIPS and Science Act, America's bid to boost domestic semiconductor output with $52.7 billion in funding, including $39 billion in subsidies for semiconductor production and $11 billion for R&D. 

Last month, the Biden administration granted $1.5 billion to GlobalFoundries (GFS.O), opens new tab, the world's third-largest contract chipmaker, to develop a new semiconductor manufacturing facility in Malta, New York, and expand current operations there and in Burlington, Vermont.

In January, the U.S. Commerce Department said it expected to give Microchip Technology (MCHP.O), opens new tab $162 million in government funding, enabling Microchip to treble production of mature-node semiconductor chips and microcontroller units at two U.S. plants. 

Awards for South Korea's Samsung and Taiwan's TSMC are likely in the following weeks. 

The objective is to lessen dependency on China and Taiwan, since the percentage of global semiconductor production capacity in the U.S. has plummeted from 37% in 1990 to 12% in 2020, according to the Semiconductor Industry Association.

Intel's award would solidify Arizona's status as a domestic chipmaking powerhouse, with Taiwan's TSMC (2330.TW), opens new tab announcing a new Phoenix-based plant in 2020 and Intel outlining plans to construct two facilities to its Chandler site there last year. 

Intel has announced plans to build a $20 billion chipmaking plant near Albany, Ohio, but the Wall Street Journal reported last month that work is not scheduled to be done until late 2026.


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