NM: Fed Investment Set to Make N.M. an Epicenter for Advanced Chip Manufacturing | Trade and Industry Development

NM: Fed Investment Set to Make N.M. an Epicenter for Advanced Chip Manufacturing

Mar 25, 2024

New Mexico Gov. Michelle Lujan Grisham applauded the White House announcement recently that will make New Mexico a vital domestic epicenter for silicon chip manufacturing. 

President Joe Biden announced last week that the U.S. Department of Commerce and Intel Corporation have reached a non-binding preliminary memorandum of terms (PMT) to provide up to $8.5 billion in direct funding, under the CHIPS and Science Act, to strengthen the U.S. supply chain and re-establish American leadership in semiconductor manufacturing. 

“New Mexico has been the proud home of Intel manufacturing for more than 40 years, and just recently we celebrated the completion of a cutting-edge manufacturing facility that is providing thousands of jobs to New Mexicans,” Gov. Lujan Grisham said. “The historic CHIPS and Science Act, signed into law by President Biden, is bringing a fresh wave of investments to our state. I am thrilled that Intel will benefit from this legislation and continue to be at the forefront of technological innovation.”  

Intel expects its investments in the United States to exceed $100 billion, as it expands capacity and capabilities in Arizona, New Mexico, Ohio, and Oregon. In addition, Intel is estimated to directly create over 10,000 manufacturing jobs and nearly 20,000 construction jobs. 

The Intel facility in Sandoval County is set to receive support for the modernization of two fabs (aka fabrications, semiconductor production facilities) into advanced packaging facilities to close an important gap in the domestic semiconductor supply chain. When it is in full production, this facility will be the largest advanced packaging facility in the United States.  

To support engineering students in New Mexico, Intel established endowment scholarships to support STEM education initiatives, as well as mentoring and internships for students in two-year certificate programs.  

The New Mexico Economic Development Department (EDD) Acting Cabinet Secretary Mark Roper said Intel’s success in New Mexico is a result of strong partnerships within the state, Sandoval County, the City of Rio Rancho, and now the Federal Government. Intel has not only leveraged state assistance via the Local Economic Development Act (LEDA) but has also utilized EDD’s Job Training Incentive Program (JTIP) with training assistance for over 400 jobs. Many of these jobs were filled with hiring events last year co-sponsored by Intel, EDD, and the Department of Workforce Solutions. 

“Since 1980, Intel has invested over $16 billion to support New Mexico operations; Intel currently employs more than 2,600 people and has an annual economic impact in the state of $1.2 billion,” Roper said. “This is a great example of how our incentives and partnerships with businesses positively affect the lives of New Mexicans, creating career paths and opportunities. Intel expects to hire 700 new employees because of our investments – the majority of them New Mexico residents.”

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