The U.S. Department of Commerce and Intel Corporation on Wednesday announced a preliminary memorandum of terms under which Intel will receive approximately $8.5 billion in direct funding under the CHIPS and Science Act.

The funding will help advance Intel's critical semiconductor manufacturing and research and development projects at sites in Arizona, New Mexico, Ohio and Oregon, where the company produces some of the advanced chips and semiconductor packaging technologies, the announcement said.

CHIPS Act funding aims to increase U.S. semiconductor manufacturing and research and development capabilities, especially in leading-edge semiconductors, it added.

Intel is the only U.S. company that both designs and manufactures leading-edge logic chips. The company's strategy is centered on three core elements of establishing process technology leadership, building a more resilient and sustainable global semiconductor supply chain, and creating a world-class foundry business, according to the announcement.

Together, CHIPS Act funding and Intel's previously announced plans to invest more than $100 billion in the United States over five years constitute one of the largest public-private investments ever made in the U.S. semiconductor industry.