Infrastructure Briefing — March 25, 2024
The U.S. Department of Commerce reached a preliminary agreement to provide Intel with up to $8.5 billion in CHIPS Act incentives plus $11 billion in loans to accelerate fabs in Arizona, Ohio, New Mexico, and Oregon.
Executive briefing: On March 25, 2024 the U.S. Department of Commerce announced a preliminary memorandum of terms with Intel under the CHIPS and Science Act. The package includes up to $8.5 billion in direct funding and up to $11 billion in loans to speed construction and modernisation of Intel’s U.S. manufacturing footprint.
Key investments
- Arizona (Chandler) Fab 52 and Fab 62. Funding supports completion of two advanced logic fabs slated for Intel 18A and foundry customers.
- Ohio (New Albany) Silicon Heartland. Construction of two leading-edge fabs resumes with a focus on foundry services and advanced packaging.
- New Mexico (Rio Rancho). Expansion of the advanced packaging campus to increase Foveros capacity for AI accelerators.
- Oregon (Hillsboro). Modernisation of research and development facilities that underpin Intel 14A process development.
Control alignment
- Supply-chain risk management. Operators relying on Intel Foundry can map supplier assurance requirements to NIST SP 800-161r1 and ISO 28000.
- Data center resilience. Facilities teams can align procurement with Uptime Institute Tier certifications and DOE energy efficiency targets referenced in the CHIPS agreements.
- Environmental commitments. Intel must meet emissions, water reuse, and community investment milestones that mirror sustainability KPIs in corporate ESG programs.
Implementation priorities
- Rebaseline accelerator and CPU delivery timelines using Intel’s updated build schedule and customer allocation plans.
- Coordinate with finance on the expected $100 billion+ of private capital Intel projects across the sites, ensuring long-term offtake agreements remain viable.
- Audit contract clauses for childcare, workforce development, and domestic sourcing commitments embedded in CHIPS awards.
Enablement moves
- Engage Intel account teams on packaging options and co-optimization windows opened by the Rio Rancho expansion.
- Update board-level supply chain briefings with the diversified geographic footprint and resilience metrics.
- Plan site visits to Chandler and New Albany to validate power, water, and logistics readiness ahead of volume ramps.
Zeph Tech analysis
- Foundry customers gain leverage. Intel Foundry will need to show credible allocation models to secure long-term contracts tied to the federal investment.
- Advanced packaging is the choke point. Rio Rancho capacity increases should relieve CoWoS constraints but will demand early design engagement.
- Compliance monitoring continues. The agreement allows the Department of Commerce to claw back incentives if Intel misses workforce, childcare, or financial milestones—risks procurement teams must track.
Zeph Tech is maintaining a CHIPS Act tracker covering disbursement milestones and construction progress so operators can time procurement with real facility readiness data.