American Multinational Corporation and Technology Company, Intel is planning to spend $100 billion dollars to expand its factories across four US states.
This comes after the company secured $19.5 billion in federal grants and loans, and, according to Reuters News Agency, they are hoping to secure another $25 billion in tax breaks.
The centerpiece of Intel’s five-year spending plan is turning empty fields near Columbus, Ohio, into what CEO Pat Gelsinger described to reporters on Tuesday as “the largest AI chip manufacturing site in the world” starting as soon as 2027.
Intel’s plan will also involve revamping sites in New Mexico and Oregon, and expanding operations in Arizona, where longtime rival Taiwan Semiconductor Manufacturing Co (2330.TW), is also building a massive factory that it hopes will receive funding from President Joe Biden’s push to bring advanced semiconductor manufacturing back to the U.S.
The U.S. government announced the federal funds to Intel under the CHIPS Act on Wednesday, sending its shares up 4% in premarket trading.
The act authorizes roughly $280 billion in new funding to boost domestic research and manufacturing of semiconductors in the United States.
