Biden to Announce Multibillion-Dollar Grant for Intel to Expand Chip Production

The decision comes as President Biden champions his economic policies during a tour of the Southwest.

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President Biden is expected to issue a multibillion-dollar award to Intel aimed at building up the U.S. semiconductor industry and reducing reliance on technology made in East Asia.

President Biden will issue a multibillion-dollar award to Intel on Wednesday to expand its chip production in the United States, people familiar with the decision said, as the president champions his economic policies during a tour of the Southwest.

The announcement in Phoenix, Ariz., is a major award from Mr. Biden’s $39 billion CHIPS and Science Act, which is aimed at building up the U.S. semiconductor industry and reducing reliance on technology made in East Asia.

Mr. Biden has made expanding the production of the chips, which are used in all types of technologies, a central focus of both efforts to compete with China and bolster domestic manufacturing.

White House officials have provided few details about the award for Intel, but an official who spoke on the condition of anonymity to discuss the grant said it would be the first for several chip makers, including Samsung, Micron and the Taiwan Semiconductor Manufacturing Company.

The White House is hoping to speed up the implementation of its semiconductor investments, but some of the companies have run into obstacles. T.S.M.C. pushed back initial manufacturing at its first Arizona factory to 2025 from this year, saying local workers lacked expertise in installing some sophisticated equipment.

Biden administration officials have also emphasized the need to ramp up apprenticeship programs to prepare a work force that can fill factories in places like Arizona or Texas.

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