China News Service reported on March 21 that on the 20th local time, the U.S. government announced a $19.5 billion subsidy for the U.S. chip company Intel.
According to reports, the funds will be used to renovate and expand Intel's computer chip factories in Arizona, Ohio, New Mexico and Oregon.
The White House said the funding will be allocated through the CHIP and Science Act.
According to reports, this includes US$8.5 billion in direct funding and US$11 billion in loans.
According to Reuters, this will be the largest amount of money invested by the U.S. government to subsidize cutting-edge chip production and increase Intel's domestic semiconductor chip production in the United States.
According to Agence France-Presse, U.S. Commerce Secretary Raimondo said before the subsidy plan was announced, "All of our most advanced chips rely on a very small number of factories in Asia. This is untenable and unacceptable." She claimed , "This is an economic security issue. This is a national security issue."
Agence France-Presse analysis pointed out that the White House and the Department of Commerce announced this plan when US President Biden visited Arizona, highlighting the strategic significance of this key battleground state in the 2024 US presidential election.
Arizona was one of the most fiercely contested areas in the United States during the 2020 election. At that time, Biden only won by a narrow margin. In the 2024 election, Biden may need to win the state again.
Biden is now facing re-election pressure as he tries to win over voters who remain skeptical of his economic record.