WASHINGTON (NEWSnet/AP) — 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 four states.

Gina Raimondo, secretary of U.S. Department of Commerce, said the deal 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, New Mexico, Ohio and Oregon.

U.S. designs advanced chips, but its inability to make them domestically has emerged as a national security and economic risk.

Intel’s projects would be funded in part through the bipartisan 2022 CHIPS and Science Act.

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