President Joe Biden announced on Wednesday a groundbreaking agreement with Intel, providing the company with up to $8.5 billion in direct funding and $11 billion in loans to build computer chip plants in Arizona, Ohio, New Mexico, and Oregon. The investment is part of Biden's economic policy to boost U.S. manufacturing and job growth, with a focus on securing the production of advanced chips domestically to reduce national security and economic risks.

Commerce Secretary Gina Raimondo emphasized the importance of the deal, stating that the United States must not only design advanced chips but also manufacture them in America to maintain its innovation system, particularly in areas such as artificial intelligence and military systems. The funding is expected to enable Intel to produce 20% of the world's most advanced chips by 2030, a significant increase from the current level of zero.

The announcement comes amid the 2024 presidential campaign, with Biden challenging former President Donald Trump's economic policies. Despite concerns about inflation and the economy, Biden is pushing forward with his plan to revitalize U.S. manufacturing and create jobs, particularly in swing states like Arizona, which could play a crucial role in the upcoming election.

The bipartisan 2022 CHIPS and Science Act, which the Biden administration helped pass, will provide support for Intel's projects, with a focus on reducing dependence on Asian chip production and safeguarding against potential economic downturns. Lawmakers, including Ohio Sen. Sherrod Brown, have expressed optimism about the impact of the investment on job creation and economic growth in their states.

Intel CEO Pat Gelsinger hailed the funding as a defining moment for the semiconductor industry and the United States, highlighting the potential for additional legislation to further support the industry. The company plans to create 30,000 manufacturing and construction jobs through the funding, as well as claim tax credits on qualified investments.

In addition to the financial support, the agreement includes commitments from Intel to local workforce training programs and increased reimbursement for its child care program, reflecting the Biden administration's focus on supporting workers and families. The company will use the funding to build new chip plants, modernize existing facilities, and establish advanced packaging facilities in the four states, marking a significant step towards securing U.S. leadership in semiconductor manufacturing.