Biden unveils $8.5B deal with Intel under CHIPS Act

U.S. President Joe Biden on Wednesday announced up to a $8.5 billion preliminary agreement with chipmaker Intel under the CHIPS and Science Act.

The agreement also includes funding of $11 billion in loans under the act, which was signed into law by Biden in August 2022 to set aside $52.7 billion to increase the production of U.S.-made semiconductors, address supply chain vulnerabilities by producing more goods in the U.S. and bolster domestic scientific research.

"Semiconductors were invented in America and power everything from cell phones to electric vehicles, refrigerators, satellites, defense systems and more. But today, the United States produces less than 10 percent of the world's chips and none of the most advanced ones," the White House said in a statement.

"Thanks to President Biden's CHIPS and Science Act, that is changing. Companies have announced over $240 billion in investments to bring semiconductor manufacturing back to the United States since the President took office. Semiconductor jobs are making a comeback. And thanks to CHIPS investments like the one today, America will produce roughly 20% of the world's leading-edge chips by the end of the decade," it added.