The Biden administration has struck a deal with Intel to provide up to $8.5 billion in direct funding and $11 billion in loans for computer chip plants in Arizona, Ohio, New Mexico, and Oregon. This cash infusion is part of the government's plan to increase the U.S.'s global share of advanced chip production from zero to 20%. President Joe Biden made the announcement while visiting Intel's Ocotillo campus in Chandler, Arizona, a swing state in the upcoming election. Commerce Secretary Gina Raimondo emphasized the importance of domestic chip production for national security and economic stability, stating that "leading-edge chips are the core of our innovation system." The funding, part of the bipartisan CHIPS and Science Act, is expected to create 30,000 manufacturing and construction jobs.

Intel CEO Pat Gelsinger praised the investment as a defining moment for the U.S. semiconductor industry, calling the CHIPS Act "the most critical industrial policy legislation since World War II." The company plans to use the funding to build new chip plants in Arizona, establish advanced facilities in Ohio and New Mexico, and modernize existing facilities in Oregon. In addition to creating jobs, Intel will also invest in workforce training programs and affordable child care. The company expects the funding to support over 50,000 indirect jobs with suppliers and other businesses.

The announcement comes as President Biden faces criticism over his handling of the economy, with only 34% of adults approving of his economic leadership. The funding is seen as a key part of Biden's efforts to revitalize U.S. manufacturing and job growth, directly challenging former President Donald Trump's protectionist policies. The investment in domestic chip production is aimed at reducing U.S. dependence on overseas manufacturers and ensuring a stable supply of advanced chips for key industries like artificial intelligence and defense.