In November 2024, the U.S. Department of Commerce finalized an agreement to provide Intel Corporation with up to $7.86 billion in direct funding under the CHIPS and Science Act. This substantial investment supports Intel's ambitious plan to invest over $100 billion in expanding semiconductor manufacturing and advanced packaging facilities across Arizona, New Mexico, Ohio, and Oregon. The initiative aims to bolster domestic production of leading-edge semiconductors, essential for technologies like artificial intelligence and critical military applications.

The CHIPS and Science Act, enacted in August 2022, allocates approximately $52.7 billion to revitalize the U.S. semiconductor industry and reduce reliance on foreign supply chains. The Act includes $39 billion in subsidies for domestic chip manufacturing and $13 billion for semiconductor research and workforce training.

Intel's expansion plans are extensive:

• Arizona: Over $32 billion is allocated to establish two new chip factories and modernize an existing facility at the Ocotillo campus in Chandler. These efforts are geared toward manufacturing advanced logic chips, with high-volume production of the Intel 18A process node slated for 2025.

• New Mexico: An investment exceeding $4 billion aims to advance the production of Intel's 3D packaging technology, known as Foveros, along with other advanced chip packaging capabilities.

• Ohio: More than $28 billion is dedicated to constructing two leading-edge chip factories in New Albany.

• Oregon: Over $36 billion is planned for investments in Hillsboro to facilitate the delivery of Intel 18A and other process technologies beyond 2025.

These projects are expected to create over 10,000 new jobs within Intel, nearly 20,000 construction jobs, and support more than 50,000 additional jobs in related sectors.

U.S. Secretary of Commerce Gina Raimondo emphasized the strategic importance of this initiative, stating, "The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and Intel is expected to play an important role in the revitalization of the U.S. semiconductor industry."

Intel CEO Pat Gelsinger highlighted the company's commitment, noting, "With Intel 3 already in high-volume production and Intel 18A set to follow next year, leading-edge semiconductors are once again being made on American soil."

However, the CHIPS and Science Act has faced political scrutiny. In March 2025, President Donald Trump called for the elimination of the $52.7 billion semiconductor subsidy law, suggesting that tariffs on foreign chips could be a more cost-effective strategy to attract manufacturing back to the United States. Despite this, there is little political interest in Congress to move forward with this repeal. Arizona, in particular, has greatly benefited from this legislation, seeing significant investment from companies like Intel and TSMC. Repealing the act would be challenging, especially for Arizona's swing-district Republicans, who see direct advantages from semiconductor industry growth. Additionally, the legality of retrieving allocated funds from businesses remains uncertain. The semiconductor industry is actively trying to demonstrate the importance of the CHIPS Act to Trump to prevent its repeal.

The CHIPS and Science Act represents a significant federal investment aimed at reducing dependency on foreign-made chips, a concern that was amplified during the semiconductor shortages experienced in the COVID-19 pandemic. While the act's funding is substantial, reports indicate that the cost per job created may be high, raising questions about the efficiency of the investment. A report by the Peterson Institute for International Economics estimated that each job created under the act could cost taxpayers about $185,000 annually, which is double the average salary of U.S. semiconductor employees.

Intel's expansion, supported by federal funding, is poised to significantly enhance the U.S. semiconductor industry's capacity, addressing critical needs in technologies like artificial intelligence and military applications. However, the initiative has sparked debates over its economic efficiency and political viability, especially in light of recent critiques from President Donald Trump.