Intel is poised to receive up to $8.5 billion in direct funding from the CHIPS & Science Act, along with an additional $11 billion in loans available to the company.

The CHIPS Act is the US’ attempt to revitalize its semiconductor industry and reduce dependence on foreign companies and foundries. The issue became a major point of concern during the pandemic when supply chains were compromised and semiconductor shortages impacted everything from computers to automobiles.

The Biden administration pointed to America’s historic role in the semiconductor industry, and how the CHIPS Act would help it recapture some of that glory.

Semiconductors were invented in America and power everything from cell phones to electric vehicles, refrigerators, satellites, defense systems, and more. But today, the United States produces less than 10 percent of the world’s chips and none of the most advanced ones. Thanks to President Biden’s CHIPS and Science Act, that is changing. Companies have announced over $240 billion in investments to bring semiconductor manufacturing back to the United States since the President took office. Semiconductor jobs are making a comeback. And thanks to CHIPS investments like the one today, America will produce roughly 20% of the world’s leading-edge chips by the end of the decade.

Much like the US semiconductor industry at large, Intel was an early leader in the field before being eclipsed by foreign companies. Intel is desperately trying to retake the crown as the world’s most advanced chip maker and sees US investment as a path toward that goal.

The company plans to use the funds to help support its new foundry construction, according to the White House.

The announcement will support the construction and expansion of Intel facilities in Arizona, Ohio, New Mexico, and Oregon, creating nearly 30,000 jobs and supporting tens of thousands of indirect jobs.