The Intel logo is displayed on the exterior of Intel headquarters in Santa Clara, California, the US, Jan 12, 2011. (PHOTO / AP)

SAN FRANCISCO - The US 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.

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

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

ALSO READ: Intel signs Microsoft as foundry customer, 'hopes to beat TSMC'

Intel is the only US 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 dollars in the United States over five years constitute one of the largest public-private investments ever made in the US semiconductor industry.