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Washington — The Biden administration has reached an agreement to provide Intel with up to $8.5 billion in direct funding and $11 billion in loans for computer chip plants in Arizona, Ohio, New Mexico and Oregon. 

President Joe Biden plans to talk up the investment on Wednesday as he visits Intel’s campus in Chandler, Arizona, which could be a decisive swing state in November’s election. He has often said that not enough voters know about his economic policies and suggested that more would support him if they did know. 

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, up from the current level of zero. The United States designs advanced chips, but its inability to make them domestically has emerged as a national security and economic risk. 

“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 on a call with reporters. “We can’t just design chips. We have to make them in America.”

The funding announcement comes amid the heat of the 2024 presidential campaign. Biden has been telling voters that his policies have led to a resurgence in U.S. manufacturing and job growth. His message is a direct challenge to former President Donald Trump, the presumptive Republican nominee, who raised tariffs while in the White House and wants to do so again on the promise of protecting U.S. factory jobs from China. 

Biden narrowly beat Trump in Arizona in 2020 by a margin of 49.4% to 49.1%. 

U.S. adults have dim views of Biden’s economic leadership, with just 34% approving, according to a February poll by The Associated Press-NORC Center for Public Affairs. The lingering impact of inflation hitting a four-decade high in 2022 has hurt the Democrat, who had a 52% approval on the economy in July 2021. 

Intel’s projects would be funded in part through the bipartisan 2022 CHIPS and Science Act, which the Biden administration helped shepherd through Congress at a time of concerns after the pandemic that the loss of access to chips made in Asia could plunge the U.S. economy into recession.  

When pushing for the investment, lawmakers expressed concern about efforts by China to control Taiwan, which accounts for more than 90% of advanced computer chip production. 

Ohio Sen. Sherrod Brown, a Democrat up for reelection this year, stressed that his state would become “a global leader in semiconductor manufacturing” as Intel would be generating thousands of jobs. Ohio has voted for Trump in the past two presidential elections, and Brown in November will face Republican Bernie Moreno, a Trump-backed businessman from Cleveland. 

Wednesday’s announcement is the fourth and largest so far under the chips law, with the government support expected to help enable Intel to make $100 billion in capital investments over five years. About 25% of that total would involve building and land, while roughly 70% would go to equipment, said Pat Gelsinger, CEO of Intel. 

“We think of this as a defining moment for the United States, the semiconductor industry and for Intel,” said Gelsinger, who called the CHIPS Act “the most critical industrial policy legislation since World War II.” 

The Intel CEO said on a call with reporters that he would like to see a sequel to the 2022 law in order to provide additional funding for the industry. 

Biden administration officials say that computer chip companies would not be investing domestically at their expected scale without the government support. Intel funding would lead to a combined 30,000 manufacturing and construction jobs. The company also plans to claim tax credits from the Treasury Department worth up to 25% on qualified investments. 

The Santa Clara, California-based company will use the funding in four different states. In Chandler, Arizona, the money will help to build two new chip plants and modernize an existing one. The funding will establish two advanced plants in New Albany, Ohio, which is just outside the state capital of Columbus. 

The company will also turn two of its plants in Rio Rancho, New Mexico into advanced packaging facilities. And Intel will also modernize facilities in Hillsboro, Oregon. 

The Biden administration has also made workforce training and access to affordable childcare a priority in agreements to support companies. Under the agreement with the Commerce Department, Intel will commit to local training programs as well as increase the reimbursement amount for its childcare program, among other efforts. 
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washington — The U.S. House of Representatives passed a bill March 13 that, if enacted into law, would give ByteDance, the Chinese owner of the TikTok social media app, 180 days to divest its U.S. assets or face a ban over concerns about national security, including Beijing’s ability to access Americans’ private information through the company

ByteDance denies it would provide such private data to the Chinese government, despite reports indicating such information could be at risk.

VOA sat down on the day the bill passed with Republican Representative Mario Diaz-Balart of Florida, chairman of the House Appropriations subcommittee on state, foreign operations and related programs, and co-chair of the Congressional Taiwan Caucus, to hear why he supported the bill and why he’s calling for faster military support for Taiwan, the self-ruled island that Beijing claims as a breakaway province that must one day reunite with the mainland, by force if necessary.

This year marks the 45th anniversary of Congress’ enactment of the Taiwan Relations Act, which outlines nondiplomatic relations between Washington and Taipei in the wake of formal U.S. recognition of Beijing as the government of China. The act states that the U.S. must provide Taiwan with the means to defend itself.

This interview has been edited for clarity and brevity.

VOA: The House just passed a bill that would require ByteDance to divest TikTok. Did you support this bill?

U.S. Representative Mario Diaz-Balart: I absolutely did. … It has strong bipartisan support. And there’s also been a lot of misinformation about it. People say that it’s to ban TikTok. No, it’s basically saying you have to divest from, in essence, being controlled by the Communist Party of China.

We would have never allowed, during the Soviet empire, the Soviet Union to control, to own, one of the major networks in the United States – ABC, NBC, CBS. Why? Because it’s a threat to national security. In this case, it’s even more dramatic because they [the Chinese] have access not only to getting into people’s homes, but to actually get information from the American people. And they’ve been pretty good and very aggressive at doing that. And so TikTok needs to be divested. That’s the least that we should be requiring, and if so, then they can continue to function. But we cannot allow for this to function, getting information from the American people to an entity that is in essence a subsidiary of the Communist Party of China.

VOA: It is a consensus in Washington that if China invaded Taiwan, it would trigger a domino effect that could be catastrophic for the U.S. What are the most important actions the U.S. can take right now to prevent that from happening?

Diaz-Balart: The key is to avoid China doing something stupid, to avoid China being irresponsible in trying to intervene militarily with Taiwan. … And the way to do that is to make sure that Taiwan has the weaponry, everything it needs, so that China understands that trying to invade Taiwan is a very, very bad proposition.

VOA: The Biden administration last month approved a package of military equipment sales to Taiwan. Some analysts are worried this may not be sufficient to counter China’s aggression in the region. Do you think military sales to Taiwan are sufficient?

Diaz-Balart: I think military sales to Taiwan have to be done quicker. We have to be more aggressive … not only, obviously, directly, to help send the weaponry, sell the weaponry, and send the weaponry to Taiwan, but we also have to keep up with our defense spending domestically to keep the military industrial base alive and, well, with what we’ve seen, for example, going on Ukraine, [that] has demonstrated that we’re not where we need to be as far as our industrial base.

VOA: You visited Taiwan in January right after its election. What is your key takeaway from that trip?

Diaz-Balart: Taiwan is a very vigorous democracy. The press is very aggressive. That’s a good thing. … We made a point of obviously visiting with the president and the vice president-elect, also with the outgoing president. But we also met with the leadership of the other two parties, because it’s important to demonstrate that we cherish and that we love democracy and freedom. Taiwan is a beacon of freedom and democracy.

VOA: It is the bipartisan consensus to see China as one of the biggest geopolitical challenges for the U.S. in the coming decades. What should be the top priority the U.S. should tackle right now with China?

Diaz-Balart: We have to be a little bit more serious about understanding that China is a very dangerous player in the world. It is the largest fascist dictatorship on the planet, and the wealthiest fascist dictatorship on the planet. It has very ambitious goals. It has, you know, we see the cyberattacks that have taken place in this country that we know have come from Communist China. We also know that there have been thousands upon thousands of men, military-age males, coming from China across the southern border, which should frankly frighten all of us. …

That means utilizing every diplomatic and economic tool at our disposal to treat China as what it is: a growing threat to the United States and to the world. And you see, for example, in the region, how countries are very concerned about China’s aggressiveness, whether it’s the Philippines or India or even Vietnam. So there’s a growing concern in the world about this aggressive attitude of China. But we need to take real steps to confront that in a way to avoid war.

VOA: You’re also the chairman of the House Appropriations subcommittee on state, foreign operations and related programs. What kind of role would you like to see U.S. international broadcasting agencies like Voice of America play in countering Chinese Communist Party propaganda?

Diaz-Balart: The Voice of America has been a key player for decades in that cause of freedom and in getting real news, real information to people who don’t have access to it because of censorship. And so I’ve always been a strong supporter of it because of that. I think information is key. The first thing that happens in a dictatorship is that they close the ability for people to get real information, to get real news. And if we can be helpful to have people around the world get real information, real news, not only about what happens around the world but also what even happens in their own country, I think that is a service to humanity.

Adrianna Zhang contributed to this report.
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