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White House gives Intel almost $20B | US elections 2024

Natasha Kumar By Natasha Kumar Mar20,2024

White House gives Intel almost $20B | 2024 US elections

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US President Joe Biden at a campaign event in Phoenix, Arizona; a pivotal state in which he must announce an unprecedented investment in his presidency in the American giant Intel.

Agence France-Presse

The White House unveiled on Wednesday a package of aid and subsidies, amounting to nearly $20 billion, to enable American semiconductor giant Intel to increase its production of these essential components.

This would be the highest amount announced to date by the administration of President Joe Biden to fight against the power of China in this crucial industry.

The president decided to make this announcement during a trip to Arizona, to highlight the measures adopted during his mandate in the states which should be decisive in the presidential election in November.

As in 2020, Mr. Biden will face former Republican President Donald Trump in the race for the White House.

< p class="StyledBodyHtmlParagraph-sc-48221190-4 hnvfyV">That year, Arizona (southwest) offered victory to the Democrat, but with one of the closest results in the country, only 10,457 votes apart.

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A new success in this state could prove decisive for the current president, who seeks to convince voters who remain skeptical of his economic record, despite recent positive statistics concerning growth, job creation and #jobs, a low unemployment rate or even a slowdown in inflation.

The Commerce Department has reached a preliminary agreement with Intel to provide up to $8.5 billion in direct financing and $11 billion in loans under the “Chips and Science Act,” detailed the White House in a press release.

This law, which dates from the summer of 2022, provides $52.7 billion to revive the semiconductor production in the United States.

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The Intel symbol appears on screen at the NASDAQ stock exchange in New York. Intel received nearly $20 billion from the Biden government in mid-March 2024. (File photo)

The envelope announced Wednesday will help build and expand Intel's infrastructure in Arizona, Ohio, New Mexico and Oregon, the company added. White House.

Thanks to these investments, it plans to create nearly 30,000 direct jobs and support tens of thousands of workers. ;indirect employment.

Commerce Secretary Gina Raimondo told reporters ahead of the official announcement that Intel would invest the equivalent of more than $100 billion.

According to her, this represents one of the highest investments ever made in the semiconductor industry in the country. And it will allow the United States to move closer to its goal of producing, by 2030, 20% of the state-of-the-art chips manufactured in the world, she added, stressing that the current level was zero.

We rely on a very small number of factories in Asia for all of our most sophisticated microprocessors. This is untenable and unacceptable, commented the minister.

It's a problem of economic security. This is a national security issue. And we are going to change that, she said.

The White House has indicated that Intel also intends to take advantage of a credit of investment tax of up to 25% of certain expenses, which could significantly increase the financial support it would likely receive from the U.S. government.

This tax benefit stems from another piece of legislation from the Biden administration, the Inflation Reduction Act (IRA), also passed in 2022. It is a broad tax program energy transition and social reforms.

Intel's investment represents a promising part of a great turnaround in American history, with leading semiconductor production returning to the United States for the first time in forty years, commented Lael Brainard, Joe Biden's main economic advisor, during the same speech as Ms. Raimondo.

With the support of the law CHIPS, Intel's $100 billion investment fits into President Biden's promise to build the future of the semiconductor industry here in the United States United, noted Ms. Brainard, specifying that 10,000 jobs would be created in production and 20,000 in the construction sector.

L&#x27 Arizona and Ohio are two swing states for which it is difficult to predict the results, and which can tip the scales for the Democrats or the Republicans, from one presidential election to the next. For this reason, Arizona and Ohio are expected to benefit from the greatest number of job creations.

Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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