Agreement brings in $250M in funding for semiconductor projects in New Mexico

An agreement between Intel and the U.S. Department of Commerce announced Wednesday will bring in $250 million of federal funding to expand semiconductor manufacturing in New Mexico.

This new funding will support 700 manufacturing jobs and 1,000 construction jobs in New Mexico.

“I’m thrilled that Intel in Rio Rancho is now a recipient of CHIPS Act funding,” U.S. Rep. Melanie Stansbury said. “Intel is leading the way in chips manufacturing and the development of AI technologies, and I am so proud of the huge role that New Mexicans play in this innovation. We are building up the middle class and giving families the opportunities they need to support themselves by creating 1,000 new construction jobs and 700 manufacturing jobs.”

This investment was secured through the passage of the CHIPS and Science Act, legislation championed by the New Mexico delegation that lowers costs, boosts domestic semiconductor manufacturing, strengthens domestic supply chains and preserves American competitiveness in the 21st century. U.S. Sen. Martin Heinrich was on the conference committee to resolve differences between the House and Senate versions of the bill and secure bicameral passage in 2022.

“I fought hard to pass the CHIPS and Science Act because I knew it would have a transformative impact,” Heinrich said. “Thanks to Intel’s investment in New Mexico, we are already seeing the benefits of this landmark law build a better future for the hard-working people of our state — growing our economy, strengthening the middle class and creating high-quality careers New Mexicans can build their families around. With today’s announcement, we’re further solidifying our state’s role as a leader in innovation and advanced manufacturing.”

To prepare New Mexico students for these new advanced manufacturing jobs, Intel also announced Wednesday that it has established endowment scholarships at five colleges and universities in New Mexico and has supported STEAM education through investments, annual grants and hands-on learning kits benefitting students living on tribal lands.

“Advanced manufacturing has a long history in New Mexico. From the invention of the cleanroom and development of microelectronics at Sandia National Lab to today’s announcement in Rio Rancho, New Mexico continues to create new opportunities in research and manufacturing. The CHIPS and Science Act is critical legislation that will further New Mexico’s semiconductor industry and create more good-paying jobs in the process,” U.S Sen. Ben Ray Luján said. “Intel has already helped increase job opportunities in New Mexico, and I’m proud this investment from the CHIPS and Science Act will help expand chipmaking capacity and ensure our country continues to lead in developing cutting-edge technology.”

The funding is part of a deal President Joe Biden’s administration has reached to provide Intel with up to $8.5 billion in direct funding and $11 billion in loans for computer chip plants in four states, a cash infusion that the government says should help the U.S. boost its global share of advanced chip production from zero to 20%.

Commerce Secretary Gina Raimondo said the deal reached through her department would put the United States in a position to produce 20% of the world’s most advanced chips by 2030 with Intel investing in facilities in Arizona, Ohio, Oregon and New Mexico.

“Failure is not an option — leading-edge chips are the core of our innovation system, especially when it comes to advances in artificial intelligence and our military systems,” Raimondo said. “We can’t just design chips. We have to make them in America.”According to Intel, CHIPS Act funding will support the company’s plans to modernize its New Mexico site for the manufacturing of advanced packaging technologies. That includes the opening of the new fab, called Fab 9, and upgrading an existing fab in New Mexico, Fab 11X.“The historic CHIPS and Science Act signed into law by President Biden is bringing a fresh wave of investments to our state,” Gov. Michelle Lujan Grisham said. “I’m thrilledIntel will benefit from this legislation and continue to be at the forefront of technological innovation.”