The Biden administration has awarded Intel a substantial $7.865 billion in CHIPS Act funding to bolster domestic semiconductor manufacturing in the United States. This marks the largest award granted under the CHIPS Act to date, although slightly smaller than the initial $8.5 billion earmarked for the chipmaker in March.

The agreement, confirmed by the US Department of Commerce, will see Intel invest in building and expanding its semiconductor fabrication facilities across four states: Arizona, New Mexico, Ohio, and Oregon. This significant investment is expected to create up to 30,000 job roles across these states, aligning with the administration's goal of reshoring manufacturing and creating good-paying jobs.

In a statement, White House Deputy Chief of Staff Natalie Quillian emphasized the significance of this award, stating that it "marks another key step in implementing President Biden's CHIPS and Science Act and the Investing in America agenda to reshore manufacturing, create thousands of good-paying jobs, and strengthen our economy."

According to reports, Intel will receive at least $1 billion in funds later this year, with the company committing to refrain from stock buybacks for the next five years. This investment comes despite Intel's recent struggles, including scaling back its ambitions in Ohio, reducing its planned investments in US manufacturing, and facing significant losses in its last quarterly report.

The funding reduction is attributed to Intel's separate $3 billion contract in September to develop chips for national security products and military applications, as well as extended project timelines beyond the 2030 government deadline. Despite these challenges, the CHIPS Act funding is a crucial step in bolstering the US semiconductor industry and reducing reliance on foreign chipmakers.

With Intel secured, the US Commerce Department has now completed agreements with six companies, distributing $19 billion of the total $39 billion in funding available. As the administration races to allocate the remaining funds before the change in administration, we can expect more announcements in the coming weeks.

The CHIPS Act, a cornerstone of the Biden administration's economic agenda, aims to revitalize the US semiconductor industry and reduce dependence on foreign chipmakers. As the global tech landscape continues to evolve, this investment in domestic manufacturing is critical to maintaining US competitiveness and national security interests.

As the clock ticks down on the remaining CHIPS Act funding, all eyes will be on the US Commerce Department to see which companies will be awarded the remaining grants. One thing is certain – the stakes are high, and the implications of these investments will be felt for years to come.