The Biden administration has formally approved more than $7.8 billion in grants leveraging the CHIPS Act to bolster Intel's manufacturing capabilities in the United States. Behind this is a strategic intention to support economic growth and national security.
🟦 The U.S. supports Intel! More than .8 billion in subsidies under the CHIPS Act
The U.S. government has decided to provide subsidies of $ 7.86 billion (about 1.2 trillion yen) based on the CHIPS Act to support semiconductor manufacturing projects developed by Intel in Arizona, New Mexico, Ohio, and Oregon.
The grant will support Intel’s planned $90 billion investment and will create tens of thousands of jobs in the construction and related sectors, as well as manufacturing. Semiconductor manufacturing is a key technology that is indispensable for a wide range of industries, from smartphones and automobiles to military equipment, and increasing domestic production capacity is the key to economic stability and technological independence.
🟦 Reasons for the subsidy and expected effects
The semiconductor industry is considered an important sector that is directly linked to the national security and economic growth of the United States, and huge investments are being made to expand domestic manufacturing through the CHIPS Act. In particular, as international competition intensifies, including in China, there is a need to secure a stable supply of semiconductors domestically.
In addition, Intel’s involvement in the production of military-grade chips as part of its Secure Enclave program is significant for national defense.
🟦 Summary
The Biden administration’s decision to grant Intel more than $7.8 billion under the CHIPS Act is emblematic of the U.S. strategy to revive the semiconductor industry and expand domestic manufacturing. The project, which will be centered in Arizona and Ohio, is expected to have a significant ripple effect on the national economy and job creation.
If the basis for subsidy contributions is the production of chips for national security or military purposes, it is certainly difficult to be criticized because it is recognized as an important national strategy.
