WASHINGTON, March 20 (Reuters) - President Joe Biden's

move on Wednesday to pump $19.5 billion into Intel's ( INTC )

expanding chip-making business could pay dividends with a

critical part of the American electorate his Democrats need to

win over: independents in the swing state of Arizona.

The move will create thousands of jobs in the Southwestern

border state that is expected to play a critical role in

determining the Nov. 5 elections for president and Congress.

Recent polling shows the economy as Arizona voters' No. 2

concern after immigration.

In addition to the close-fought contest between Biden and

Republican challenger Donald Trump, Arizona voters will be

choosing a successor to retiring Senator Kyrsten Sinema, a

Democrat-turned-independent, and deciding two highly competitive

races for House of Representatives seats now held by

Republicans.

"The potential could be independent voters," said Thom

Reilly, a professor at Arizona State University's School of

Public Affairs, who noted that independents are the state's

largest voting bloc and represented about 40% of voters in the

2022 midterm elections.

"Independents came out in significant numbers for Democrats

in 2022," said Reilly, who added that Wednesday's news could

carry weight with the state's large and growing numbers of youth

and Hispanic voters, as well as California transplants.

The funds come from the 2022 CHIPS and Science Act, which

slated around $52 billion in federal government subsidies to

support the domestic production of semiconductors, coupled with

about $24 billion worth of investment tax credits.

In addition to Arizona, funds will go to Ohio, home to

another key Senate race, New Mexico and Oregon. Intel ( INTC ) estimated

the new plants will create 3,000 new jobs in the company and

another 6,000 spots for the construction workers who build them.

Arizona will play a critical role in determining whether

Democrats can protect their slim 51-49 majority in the Senate.

The race will pit Democratic U.S. Representative Ruben Gallego

against Republican former television broadcaster Kari Lake, a

vocal Trump supporter.

TIGHT CONTEST

Biden won Arizona in a tight 2020 race against Trump. A Feb.

22 Emerson College poll of 1,000 registered voters in the state

had Trump leading Biden 46% to 43%, which is within the margin

of error of 3 percentage points. In that same poll, Gallego led

Lake 46% to 39%, with 15% undecided.

Intel ( INTC ) said the new, expanded facilities will be in the city

of Chandler, about 20 miles (32 km) southeast of Phoenix. That

puts it within driving distance of the state's two most

competitive House districts. With Republicans holding a narrow

219-213 majority, a few changes could flip control of the

chamber.

Both those seats are held by Republicans, Representatives

David Schweikert and Juan Ciscomani, who are expected to face

tough races against Democrats. Republicans and Democrats hold

their primary elections on July 30.

Officials with the two campaigns did not immediately respond

to requests for comment.

Schweikert, who won reelection in 2022 by 3,200 votes, voted

against the massive semiconductor investment bill, as did most

of his House Republican colleagues.

Ciscomani is a first-term Republican who was not in Congress

in 2022. Gallego voted in favor of the bill.

"Anytime you can deliver actual results to a company and a

state ... it's a net positive," said Jessica Taylor, an editor

at the nonpartisan Cook Political Report.

She added that whether Democrats actually gain votes depends

in part on how effective the White House is in communicating

going forward. That is an area that the Biden administration has

come under criticism for and the president himself has expressed

frustrations over.

"What kind of economics are people concerned about? Things

like this or more like kitchen-table issues," Taylor said

referring to consumer prices and inflation. "That's the biggest

hurdle that they have with undecided voters."