Intel delays ceremony for Ohio factory over lack of government funding

Because the US government hasn’t yet given it funds, Intel has decided to postpone the groundbreaking ceremony for its intended chip-making facility in Ohio, the company said (via The Washington Post and The Wall Street Journal). The event, which had been scheduled on July 22nd, has been postponed indefinitely in an apparent effort to pressure the US government into approving the CHIPS Act. In a statement earlier this year, Intel stated that its $20 billion proposal to construct two semiconductor manufacturing facilities in New Albany, Ohio, would “heavily depend on financing from the CHIPS Act.” To encourage chip manufacture in the United States, the CHIPS Act sets aside $52 billion in support for semiconductor firms, including Intel.

The law has been adopted by both the Senate and the House, but progress on its finalisation in Congress has halted. According to an email seen by the WSJ, Intel informed US legislators and government representatives that it is postponing its ceremony “partially owing to uncertainties regarding” the CHIPS Act. Intel’s William Moss reiterates in a statement to The Verge that the “scope and pace” of the company’s effort depend on financing from the CHIPS Act. Moss continues, “Unfortunately, CHIPS Act financing has advanced slower than we anticipated, and we still don’t know when it will be completed.

Intel and other government representatives are putting increasing pressure on Congress to enact the CHIPS Act before the august congressional vacation. The Post said that officials are worried that Congress’s inaction on the measure would prompt semiconductor companies to stop investing in the US. In a statement to CNBC in May, US Secretary of Commerce Gina Raimondo forewarned of this potential scenario and asked Congress to enact the legislation. “We’re going to miss out on it if Congress doesn’t adopt the CHIPS Act and passes it swiftly. According to Raimondo, Intel, Micron, and Samsung are expanding and plan to develop new facilities.