What happened now? Intel says it will postpone the groundbreaking ceremony for its semiconductor manufacturing plant in Ohio and warned of possible delays as Congress drags out the chip bill. The legislation provides, among other things, US$52 billion in funding to boost domestic semiconductor manufacturing and research and development.
In January Intel announced plans to build a $20 billion chip manufacturing facility in New Albany, on the outskirts of Columbus, Ohio, as part of its IDM 2.0 strategy. The facility, which will employ 3,000 people, is expected to start later this year and be fully operational by 2025.
Intel said spending on the Ohio facility could reach $100 billion over the next ten years, but the company warned that the “scale and pace” of that expansion depended on the Chip Act. While a standalone bill version was passed last year, funding has yet to be signed as House and Senate negotiators continue to work to resolve disputes.
“Unfortunately, funding for the Chip Act has been moving slower than we expected and we still don’t know when it will be done,” said Intel spokesman Will Moss, who urged Congress to act so Intel “can move forward with speed and scale.” we have long envisioned for Ohio” and other US projects.
The groundbreaking ceremony for the Ohio plant was scheduled for next month but will now be delayed in part because of the “uncertainty” surrounding the bill. Moss said Intel remains committed to the $20 billion investment and remains excited to start construction on the site.
GlobalFoundries, which is expanding its manufacturing site in Malta, New York, issued a similar warning that the delay in the chip law is slowing down its plans. “The CHIPS Act makes the US semiconductor industry more globally competitive. For GlobalFoundries, the transfer of funding to CHIPS will impact the level and speed at which we invest in expanding our US manufacturing facilities,” the spokesperson said.
Intel is also building new chip factories in Arizona; it has invested $7 billion in a new manufacturing center in Malaysia; there are plans to invest $3.5 billion in their operations in New Mexico; and its $7 billion Fab 34 manufacturing facility in Ireland received its first equipment earlier this year. In addition, the company receives 6.8 billion euros (7.15 billion dollars) in the form of subsidiesabout 40% of the total cost to build a state-of-the-art campus in Germany (above).
In other news, Intel, the firm just demanded $625 million in the interest of the EU after a $1.2 billion antitrust fine was lifted in January.
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