Biden announces major semiconductor deal with Intel to invest in four states

[BumRushDaShow]

Source: The Hill

03/20/24 5:00 AM ET


President Biden on Thursday will tout an agreement with Intel to provide up to $8.5 billion to bolster semiconductor manufacturing and expand the company’s operations in four states, the latest major investment through the bipartisan CHIPS and Science Act.

Biden will travel to Chandler, Ariz., where he will visit an Intel campus to tout the preliminary agreement, which would also provide $11 billion in loans under the CHIP and Science Act and includes millions to help develop Intel’s semiconductor and construction workforce.

The funding would support construction and expansion of intel facilities in Arizona, Ohio, New Mexico and Oregon and create nearly 30,000 jobs, White House officials said.

“There is no one who cares more about revitalizing American manufacturing than President Biden, and today’s announcement is a massive step towards ensuring America’s leadership in manufacturing for the 21st century,” Commerce Secretary Gina Raimondo said in a statement. “This announcement is the culmination of years of work by President Biden and bipartisan efforts in Congress to ensure that the leading-edge chips we need to secure our economic and national security are made in the U.S.”

Read more: https://thehill.com/homenews/administration/4543047-biden-announces-major-semiconductor-deal-with-intel-to-invest-in-four-states/

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Link to White House FACT SHEET - FACT SHEET: President Biden Announces Up To $8.5 Billion Preliminary Agreement with Intel under the CHIPS & Science Act

[riversedge]

1. This is HUGE! President Biden is in Arizona today to announce an agreement to provide Intel with $8.5 billion in fundin

This is HUGE!

President Biden is in Arizona today to announce an agreement to provide Intel with $8.5 billion in funding and $11 billion in loans for computer chip plants in 4 states — Arizona, Ohio, New Mexico and Oregon. Intel said the new funding, as well as additional investments, will create a combined 30,000 manufacturing and construction jobs.

The investment will secure America’s leadership in semiconductor technology to meet the demand created by AI.

Link to tweet

?s=20

[hueymahl]

2. I'm curious

Why does a highly profitable company like intel need all this money? Seems like a handout to the wealthy.

[uncle ray]

4. have you forgotten the post covid chip shortage?

we really need the chip manufacturing capability here in the US for national defense and economic reasons. if we want the chips and jobs these are the deals that need to be make, like them or not.

[BumRushDaShow]

5. Other countries have subsidized these corporations to build factories in their locations

But then once that is constructed here and are operational, it usually results in "support businesses" (creating more jobs) that pop up around/near the company/factory (restaurants, pharmacies, coffee shops, supermarkets, bars, etc) and we would need to ride their tails to make sure they pay the taxes for operating in the U.S.

[hueymahl]

6. Yeah, I guess it depends on the details of the deal and how/if it is paid back

But I still don't see why a HIGHLY profitable company can't use the normal markets to raise capital for the plants. It's not like we are trying to kick-start a green energy company that has to compete with subsidized oil companies.

Generally, I am against corporate welfare.

[BumRushDaShow]

9. Well when you have countries that promote slave labor

and use that as an incentive to have those companies build there (and they do), then that is the type of thing we are competing with.

I think what killed them economically (at least briefly) was COVID and the complete break-down of their supply chains, so they were caught off guard with their "single point of failure" (China).

That sharp production loss during the pandemic is probably why they are amendable to even consider taking what they probably consider "piddly" subsidies (because their total cost of production is going to include much higher labor costs compared to the $12 a day Chinese factory worker), although they will not have the exorbitant transportation costs to move product here.

[hueymahl]

10. We absolutely need to remove the incentives to move production overseas

That is the real tragedy - that we let corporations distort our laws and tax codes in the name of "free trade"

[IronLionZion]

3. Hoping those states will vote Biden this year

Since the job killing socialism turned out to actually create lots of jobs

[RussBLib]

7. Keep 'em coming, Joe!

...I don't really care for corporate welfare either, but Intel, for one, has been struggling.

This kind of investment usually does create ancillary businesses that would not have sprung up without the initial investment. I do wish building a chip plant didn't take so long, but it's a tricky business.

https://russblib.blogspot.com/?m=1

[republianmushroom]

8. This will PO the chinese and republicans.

[Hotler]

11. Intel starts stock buy back after getting government money. CEO gets $50 million bonus.