Intel Delays Ohio Facility Opening Due To Lack Of Government Funds

    Because money from the US government has not yet been secured, Intel is delaying the groundbreaking for its intended Ohio chip factory, the company said The edge (above The Washington Post and The Wall Street Journal). The ceremony, which was supposed to take place on July 22, has been put off indefinitely, which will probably encourage the US government to enact the CHIPS bill.

    Earlier this year, Intel revealed its $20 billion proposal to construct two semiconductor manufacturing facilities in New Albany, Ohio, emphasizing that its growth to as many as eight facilities “would be substantially dependent on funding from the CHIPS Act.”

    The CHIPS Act allocates $52 billion to semiconductor firms, including Intel, to increase US chip production. Despite the fact that both the Senate and House of Representatives enacted their respective versions of the measure, progress in Congress to pass it has stopped.

    There is no reason why this law shouldn’t be passed by Congress in July.

    According to an email seen by the WSJ, Intel has informed US lawmakers and government officials that it is postponing its ceremony “in part owing to uncertainty surrounding” the CHIPS law. Intel spokesman William Moss reiterates in a statement to The edge that the “scope and tempo” of the company’s initiative depends on funding from the CHIPS Act. We still don’t know when funding under the CHIPS Act will be finished, and sadly, it has been moving more slowly than expected.

    In order for the business to “start with the speed and size” of its projects in and outside of Ohio, Moss continues, “It’s time for Congress to act.” Although Intel postponed its groundbreaking, according to Moss, it hasn’t delayed its intentions to begin construction on its buildings. Production is still expected to start in 2025, with construction set to start in late 2022.

    In a joint statement following a meeting on Tuesday’s chip legislation, House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer said, “We have reiterated our confidence that there is no reason not to move this legislation through Congress in July.”

    Intel and other government representatives are putting more and more pressure on Congress to enact the CHIPS bill before the august break. According to The Post, officials are concerned that Congress’s sluggish implementation of the bill may cause semiconductor makers to focus less on the US.

    In a statement to CNBC in May, US Secretary of Commerce Gina Raimondo forewarned of this potential and asked Congress to enact the measure. We’re going to lose this if Congress doesn’t pass the CHIPS Act right away. “Intel, Micron, and Samsung are expanding and will construct new facilities,” said Raimondo.

    Mayhem Malik
    I am a creatively driven and motivated individual with over 10 years of experience in content writing. Writing is an art, and I intend to produce amazing masterpieces, with open arms to criticism to keep growing professionally!

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