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Biden Gives Intel Nearly $20 Billion To Boost US Chip Production

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Biden Gives Intel Nearly $20 Billion To Boost US Chip Production

(CTN News) – Intel got nearly $20 billion in grants and loans from President Biden on Wednesday, making it the government’s biggest investment in chip production.

In Arizona, Intel is getting more than $8 billion in grants and up to $11 billion in loans, some of which will go towards building new factories.

Due to the pandemic, factories shut and prices skyrocketed, forcing him to invest in America.

After 40 years, advanced semiconductor manufacturing will come back to America, the president said.

A Democrat, Biden attacked Donald Trump, saying Trump’s tax cuts helped wealthy corporations and companies sent jobs overseas.

“If we invented it in America, let’s make it here,” Biden said. It’ll change the country in a way you can’t even imagine.”

Raimondo called it one of the biggest semiconductor investments ever.

The administration hopes to increase the U.S. share of advanced chip production from 0% to 20% by 2030 through subsidies.

By investing $52.7 billion in the 2022 CHIPS and Science Act, the Biden administration is betting big on Intel to boost domestic semiconductor production.

It could also help Biden, who is perceived as less capable of managing the U.S. economy than Trump, win Arizona again in November. This swing state went to the Democrat in 2020 by a narrow margin.

In 1990, the U.S. contributed 37% of global semiconductor manufacturing capacity. By 2020, that share will fall to 12%, according to the Semiconductor Industry Association.

Due to China’s claim to the island, lawmakers have warned the United States against relying on chips manufactured in Taiwan by the world’s largest contract chip manufacturer TSMC.

Michael McCaul, a Republican U.S. Representative who helped draft the CHIPS Act, hailed Wednesday’s announcement.

A SOURCE OF PRIDE

Democcrats might also benefit from Biden’s Arizona trip by defending a crucial election in November and possibly boosting a pair of high-stakes races for the House of Representatives.

It was a point of pride for Biden’s 2020 campaign to flip Arizona for the first time in six elections, but his aides see a repeat victory as impossible.

According to the website FiveThirtyEight, Biden trails Trump by just a few points in the state.

A BONUS FOR INTEL

This is also welcome news for Intel, which forecast its first-quarter revenue would miss market expectations by more than $2 billion due to uncertain demand for its chips used in traditional servers and personal computers.

During the day, Intel shares gained just 0.36% to $42.20. As well as Arizona, Ohio, New Mexico, and Oregon will benefit from the funds.

To produce sensitive military chips at its Arizona facilities, the chip maker expects to receive up to $3.5 billion from the Commerce Department.

Another subsidy announcement has been made by Intel. Soon, Samsung and Taiwan’s TSMC are likely to be recognized.

Government subsidies for advanced chip manufacturing total $28 billion, despite more than $70 billion in requests. Moreover, it has a lending authority of $75 billion.

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