LOS ANGELES (AP) – The Biden administration plans to cut some of Intel’s $8.5 billion in federal funding for computer chip factories across the United States, according to three people who spoke on condition of anonymity to discuss private conversations. That’s what it means.
The reduction is largely a byproduct of the $3 billion Intel receives to provide computer chips to the military. president joe biden announced a deal to provide intel Up to $8.5 billion in direct funding and $11 billion in loans are planned for March.
Intel’s funding changes are unrelated to the company’s financial performance or milestones, people familiar with the grant told The Associated Press. In August, the chipmaker announced it would cut 15% of its workforce, or about 15,000 jobs, in an attempt to rebuild its business to compete with more successful rivals like Nvidia and AMD.
Unlike some rivals, Intel also manufactures chips in addition to designing them.
Two years ago, President Biden praised Intel as a job creator with plans to open a new factory near Columbus, Ohio. The president praised the company’s plan to “build the workforce of the future” for the $20 billion project, which will create 7,000 construction jobs and 3,000 full-time jobs, with an average annual wage of He said it would cost $135,000.
The California-based tech giant’s funding is Omnibus Law of 2022 that president biden The goal is to celebrate the United States and revive semiconductor manufacturing in the United States. is known as CHIPS and scientific lawa $280 billion package aimed at increasing U.S. dominance in military technology and manufacturing while minimizing the kinds of supply disruptions that occurred in 2021 after the coronavirus pandemic began. . Chip shortage Factory assembly lines stopped, fueled inflation.
The Biden administration helped enact the bill following pandemic-era concerns that losing access to Asian chips could push the U.S. economy into recession. Lawmakers expressed concern about China’s efforts to control Taiwan as they promoted investment. 90% or more Production of advanced computer chips.
In August, the administration promised to provide up to $6.6 billion to help Taiwan’s semiconductor giants expand their facilities. Already under construction in Arizona And we should make sure that cutting-edge microchips are produced domestically for the first time. The Department of Commerce said this funding Taiwan Semiconductor Manufacturing Co., Ltd. This means the company can expand its existing plans for two facilities in Phoenix and add a newly announced third production hub.
The administration has promised tens of billions of dollars support building usa chips Strengthen foundries and reduce dependence on Asian suppliers, which the U.S. government considers security weaknesses.
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Bork reported from Washington.
