Sen. Heinrich, U.S. Commerce Secretary discuss semiconductor manufacturing in Rio Rancho

An agreement between Intel and the U.S. Department of Commerce announced in March 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.

Last week, during a hearing to review the Fiscal Year 2025 (FY25) Budget Request for the U.S. Department of Commerce, U.S. Sen. Martin Heinrich asked Commerce Secretary Gina Raimondo about how the CHIPS and Science Act is revitalizing American semiconductor manufacturing, including at Intel’s facility in Rio Rancho.

Heinrich highlighted the success of the CHIPS and Science Act, legislation he championed.

“Secretary, as you know probably more than most, the CHIPS and Science Act has had just an incredible impact on semiconductor manufacturing in this country,” Heinrich said. “At the Intel facilities in Rio Rancho, they are reinvesting to the tune of 700 permanent manufacturing jobs and literally thousands of skilled trades jobs while they build it out.

“All of us care about jobs, but talk a little bit also about why these new advanced packaging facilities are so important to restoring America’s leadership in making chips here at home and controlling our own supply chain.”

Raimondo responded: “Exactly for the reason you said. I mean, it is quite shocking, if you think about it, that in the past few decades, the United States has gone from being the leader in semiconductor manufacturing to now being 100% dependent on Korea and Taiwan for our leading-edge chips. Ninety-two percent of our leading-edge chips come from one company in Taiwan. That puts us in an unbelievably vulnerable position.

“So, as you say, it’s exciting news that we’re creating these jobs — and there are thousands of them, and they’re good jobs, and high-paying and union jobs, and it’s great. This is fundamentally a national security issue. And you mentioned packaging. We also don’t have advanced packaging in the United States. So a disturbingly high number of chips that are in the U.S. military applications are shipped to, made somewhere, and then shipped to China or Asia to be packaged. So if we want to bolster our national security, we need to make and package these chips in the United States.”

The investment was secured through the passage of the CHIPS and Science Act, legislation that lowers costs, boosts domestic semiconductor manufacturing, strengthens domestic supply chains and preserves American competitiveness in the 21st century.

“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. We’re further solidifying our state’s role as a leader in innovation and advanced manufacturing.”