The U.S. Department of Commerce announced Nov. 26 it has awarded Intel Corporation nearly $8 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities.
$500 million of that funding will go to Rio Rancho’s Intel, modernizing two fabrication facilities and becoming a massive advanced packaging facility. Intel will refit and reopen Fab 9 and upgrade its Fabs 11 and 11X in Rio Rancho.
According to a press release from the Department of Commerce, the investment will support 1,800 manufacturing jobs and 2,500 construction jobs.
“With today’s announcement, we’re further solidifying our state’s role as a leader in innovation and advanced manufacturing, building a better future for the hard-working people of our state, growing our economy, strengthening the middle class and supporting high quality careers New Mexicans can build their families around,” U.S. Sen. Martin Heinrich said. “I fought hard to pass the CHIPS and Science Act because I knew it would have a transformative impact—today, we are seeing that work pay off.”
The award will directly support Intel’s expected U.S. investment of nearly $90 billion by the end of the decade, which is part of the company’s overall $100+ billion expansion plan. The Department will disburse the funds based on Intel’s completion of project milestones.
The funding for Intel’s investment comes from the CHIPS and Science Act, which was passed in 2022 to increase semiconductor manufacturing in America.
“The CHIPS for America program will supercharge American innovation and technology and make our country more secure – and Intel is playing an important role in the revitalization of the U.S. semiconductor industry through its unprecedented investments across Arizona, New Mexico, Ohio and Oregon,” U.S. Secretary of Commerce Gina Raimondo said. “Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award is enabling Intel to drive one of the most significant semiconductor manufacturing expansions in U.S. history.”