Intel delays ceremony for Ohio factory due to lack of government funding

Intel is postponing the groundbreaking ceremony for its planned chip-making facilities in Ohio because the US government has yet to provide it with funding, the company confirmed. ledge (Via Washington Post And wall street journalThe ceremony, which was originally scheduled to take place on July 22, has been delayed indefinitely in a possible bid to prompt the US government to pass the CHIPS Act.

Intel earlier this year announced its $20 billion plan to build two semiconductor plants in New Albany, Ohio, noting that it will potentially expand to include eight plants “with funding from the CHIPES Act”. Much will depend on it.” The CHIPS Act reserves $52 billion in funding for semiconductor companies, including Intel, to promote chip manufacturing in the US. While the Senate and House have approved their versions of the bill, the movement has stalled when Congress finalized it.

Intel told US lawmakers and government officials that it is delaying its ceremony “somewhat due to uncertainty”, according to an email seen by the CHIPS Act. WSJ, in a statement to ledgeIntel spokesman William Moss reiterated that the “scope and speed” of the company’s project depends on funding from the Chips Act. “Unfortunately, Chips Act funding has progressed more slowly than we expected and we still don’t know when it will be done,” Moss says.

“The time has come for Congress to act” so the company can “grow in speed and scale” for its projects in and outside Ohio, Moss adds. Although Intel has delayed its groundbreaking ceremony, Moss says it hasn’t given up on plans to begin building its facilities. Construction is still scheduled to begin in late 2022, with production beginning in 2025.

House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer said in a statement after a meeting Tuesday about legislation related to Chip, “We expressed our belief that there is no reason why we should get through Congress in July.” This bill should not be passed.”

Congress is facing increasing pressure from Intel and other government officials to pass the final version of the CHIPS Act ahead of a congressional recess in August. as noted by PostOfficials worry that Congress’s slow action on the bill could cause semiconductor companies to shift their focus away from the US.

In May, US Commerce Secretary Gina Raimondo warned about this possibility in a statement to CNBC and urged Congress to pass the bill. “If Congress doesn’t pass the CHIPS Act and doesn’t pass it quickly, we’re going to lose out on that. Intel, Micron, Samsung — they’re growing, they’re going to build the facilities of the future,” Raimondo said.

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