N.M. Delegation Welcomes Funding for Semiconductor Projects in New Mexico
WASHINGTON— U.S. Senators Martin Heinrich (D-N.M) and Ben Ray Luján (D-N.M.), and U.S. Representatives Teresa Leger Fernández (D-N.M.), Melanie Stansbury (D-N.M.), and Gabe Vasquez (D-N.M.) today welcomed an announcement of historic federal funding of up to $8.5 billion to expand American semiconductor manufacturing, including in New Mexico. This new funding is made possible by an agreement between Intel and the U.S. Department of Commerce. It will support 700 manufacturing jobs and 1,000 construction jobs in the state.
This investment was secured through the passage of the CHIPS and Science Act, legislation championed by Democrats in the New Mexico delegation that lowers costs, boosts domestic semiconductor manufacturing, strengthens domestic supply chains, and preserves American competitiveness in the 21st century. Heinrich was on the conference committee to resolve differences between the House and Senate versions of the bill and secure bicameral passage in 2022.
“I fought hard to pass the CHIPS and Science Act because I knew it would have a transformative impact. 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. With today’s announcement, we’re further solidifying our state’s role as a leader in innovation and advanced manufacturing,” said Heinrich.
“Advanced manufacturing has a long history in New Mexico. From the invention of the cleanroom and development of microelectronics at Sandia National Lab to today’s announcement in Rio Rancho, New Mexico continues to create new opportunities in research and manufacturing. The CHIPS and Science Act is critical legislation that will further New Mexico’s semiconductor industry and create more good-paying jobs in the process,” said Luján. “Intel has already helped increase job opportunities in New Mexico and I'm proud this investment from the CHIPS and Science Act will help expand chipmaking capacity, and ensure our country continues to lead in developing cutting-edge technology."
“We championed the Chips and Science Act because we knew New Mexico could directly contribute to the need for advanced semiconductor manufacturing in the United States. Today’s investment in our beloved communities is a realization of that legislative vision,” said Leger Fernández. “It happened because Intel’s incredible New Mexican workforce is leading the world in advanced chip manufacturing and building our enchanted innovation economy. As we continue to grow that enchanted innovation economy, we will grow paychecks, diversify our tax base, and create brighter futures for Nuevo Mexico families for generations to come.”
“I’m thrilled that Intel in Rio Rancho is now a recipient of CHIPS Act funding,” said Stansbury. “Intel is leading the way in chips manufacturing and the development of AI technologies, and I am so proud of the huge role that New Mexicans play in this innovation. We are building up the middle class and giving families the opportunities they need to support themselves by creating 1,000 new construction jobs and 700 manufacturing jobs!”
“Intel grows our local economies and I am proud to continue to bring good-paying jobs to the state," said Vasquez. "Intel New Mexico employs more than 2,600 workers and this new federal investment supports 700 new Intel jobs and 3,000 construction jobs. Our state continues to benefit from federal funding the New Mexico democratic delegation secured in bipartisan legislation."
For more information on the agreement between Intel and the U.S. Department of Commerce, click HERE.
Background
To prepare New Mexico students for these new advanced manufacturing jobs, Intel also announced today that it has established endowment scholarships at five colleges and universities in New Mexico and has supported STEAM education through investments, annual grants, and hands-on learning kits benefitting students living on Tribal lands.
Today’s announcement of the investment at Intel’s Rio Rancho manufacturing facility is remarkable particularly in light of previous downsizing at the facility within the last decade, before the CHIPS and Science Act was passed.
Back in 2017, Heinrich and then-U.S. Representative Luján announced that the U.S. Department of Labor had awarded access to Trade Adjustment Assistance (TAA) for workers at Intel's Rio Rancho facility who have been partially or completely laid off as a result of downsizing. Employees at the fabrication facility in New Mexico had been impacted by the company’s global restructuring, which had led to decreased local production and increased imports of computer microchips.
In that same year, Intel reported having 700 fewer employees at its Rio Rancho facility than at the start of 2016, a loss of 37% of its workforce. At that time, the facility was down to an estimated 1,200 full-time employees from more than 3,200 in 2013.
Today’s major news is in addition to last year’s announcement that the Southwest Advanced Prototyping (SWAP) Hub was selected to be funded through the Department of Defense’s (DOD) Microelectronics Commons. That announcement was the first official allocation of funding through the CHIPS and Science Act.
The DOD Microelectronics Commons program was created to address a critical gap in U.S. semiconductor manufacturing and innovation by creating direct pathways for U.S.-based microelectronics researchers and designers to get their innovations to market, or from “lab to fab.” The Southwest Hub will provide a collaborative forum for regional technology leaders, including Sandia National Laboratories, the University of New Mexico, Arizona State University, the University of Colorado Boulder, and private sector firms of all sizes to accelerate and enhance research efforts in this critical sector.
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The state specific portion of funding from the joint-announcement with the U.S. Department of Commerce has not been finalized. The New Mexico Delegation withdraws its previous release that included a specific figure for New Mexico.
