Kelly, Arizona Leaders Applaud Finalized $7.86 Billion Chips and Science Act Award to Intel, Highlight Economic and National Impact for Arizona and America’s Semiconductor Industry
Department of Commerce and Intel finalize largest award under Chips and Science Act, securing $3.94 billion to expand Arizona’s role in leading-edge microchip manufacturing
The CHIPS and Science Act was negotiated by Arizona Senators Mark Kelly and Kyrsten Sinema to bring microchip manufacturing back to America, create jobs, and strengthen national security
Today, the Department of Commerce announced it has finalized a $7.865 billion award to Intel Corporation through the CHIPS and Science Act, advancing Intel’s expansion of leading-edge microchip manufacturing facilities in Chandler, Arizona, which will create nearly 3,000 high-paying manufacturing jobs and 6,000 construction jobs. This award follows the preliminary agreement announced in March and will directly support Intel’s projected U.S. investment of nearly $90 billion by the end of the decade, part of the company’s broader $100+ billion expansion plan.
Arizona is home to Intel’s largest domestic manufacturing footprint, with four microchip plants in the state and two additional plants under construction in Chandler. This award will support Intel’s investments in advanced chip fabrication and packaging at its Ocotillo campus, where two state-of-the-art fabs are currently being built. These facilities will enable the production of the company’s most advanced process technologies, including Intel 18A, further solidifying Arizona’s leadership in semiconductor manufacturing and creating thousands of high-paying jobs in the state.
“Intel’s finalized agreement marks another transformative step for Arizona in global semiconductor manufacturing,” said Sen. Kelly, a chief negotiator of the Chips and Science Act. “These historic investments will accelerate Intel’s leadership in Artificial Intelligence and next generation computing, bolstering America’s position in microchip innovation and national security, while creating thousands of good-paying jobs.”
“I was proud to lead our bipartisan CHIPS and Science Act into law – directly fueling Intel’s finalized investment in Arizona – building lasting careers for Arizona families and ensuring Arizona continues to lead our country into the future,” said Sen. Sinema.
“Intel has been a foundational partner in building Arizona’s leading semiconductor ecosystem over the past five decades, and a pillar of our booming economy of today. The finalization of Intel’s agreement signifies the next chapter in our partnership and Intel’s legacy in Arizona. With this funding, Intel will expand its footprint in the state, adding to our already significant role in powering the nation’s advanced manufacturing renaissance and strengthening national security. These investments also mean more than 10,000 good-paying, family-sustaining jobs for everyday Arizonans. Thank you to Senator Kelly and Senator Sinema for making sure Arizonans were at the center of the CHIPS and Science Act, and as Governor I will continue to make sure these investments benefit communities across the state,” said Arizona Governor Katie Hobbs.
“Our bipartisan CHIPS and Science Act continues to deliver for Arizona,” said Rep. Ruben Gallego (D-AZ-3). “Today’s announcement cements the Valley of the Sun as the national hub for semiconductor manufacturing and will create thousands of new, good-paying jobs – many of which do not require a four-year degree.”
“I proudly championed the CHIPS and Science Act in the House because I knew no state in the country stood to benefit more than ours. Arizona has become a global hub for semiconductor manufacturing – anchored by Intel for more than 40 years. This finalized agreement starts the next chapter for Intel in the East Valley, and will bring even more investment and high-wage, high-tech jobs to our region,” said Rep. Greg Stanton (D-AZ-4).
“Chandler is proud to be the home of Intel’s cutting-edge semiconductor manufacturing. This announcement reinforces Chandler’s role as a global hub for semiconductor innovation and serves as a testament to the strength of our educational system, workforce, physical infrastructure and our partnership with Intel in establishing Chandler as a leader in the semiconductor industry” said Mayor Kevin Hartke.
Background:
Kelly and Sinema worked for nearly two years to negotiate and champion the CHIPS and Science Act, which includes Kelly’s $52 billion plan to boost domestic microchip manufacturing. Thanks to their leadership, Arizona is well positioned to become a global hub for microelectronics research, development, testing, manufacturing, and packaging. This marks the second final award through the CHIPS and Science Act following TSMC’s finalized award earlier this month. Commerce has also announced preliminary agreements with Amkor to expand production in Arizona.
Last month, the President signed into law Kelly’s bipartisan bill, the Building Chips in America Act, which will streamline federal permitting processes for microchip manufacturing projects while maintaining bedrock protections for clean air and clean water.
Since the passage of the CHIPS and Science Act, more than $102 billion in private investment from more than 40 semiconductor industry projects have been announced in Arizona.
