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Intel Pauses Groundbreaking for Ohio Factory While Congress Passes CHIPS Act

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Drawing of initial plans for Intel’s planned plants in Licking County, Ohio.

Intel

On Thursday, Intel confirmed to ZDNet that it is delaying the groundbreaking Ohio Semiconductor Factory due to ongoing delays in the CHIPS Act, a $52 billion funding package for domestic chip production.

Intel still plans to begin construction on the project before the end of the year, and production will begin in 2025. However, the official groundbreaking is at the forefront of the company. advance statement that “the scope and speed of Intel’s expansion in Ohio … will depend heavily on funding from the CHIPS Act.”

“Unfortunately, funding under the CHIPS Act has been slower than we expected, and we do not yet know when it will be completed,” Intel said in a statement to ZDNet on Thursday. “It’s time for Congress to act so we can move forward at the speed and scale we’ve long envisioned for Ohio and our other projects to help restore manufacturing leadership.” semiconductors in the United States and build a more resilient semiconductor supply chain.”

The Ohio plant, which will be Intel’s third in the US, will initially cost $20 billion to build. When fully built, the total investment in the site could reach $100 billion over the next decade – making it one of the largest semiconductor manufacturing sites in the world. However, the eventual size of the facility may depend on the fate of the CHIPS (Creating Useful Incentives for Semiconductor Manufacturing) Act.

Senate adopted a version of the independent invoice last year, but it has yet to reach President Biden’s desk. The bill is included in the bipartisan Innovation Act.

Groundbreaking in Ohio is slated for July 22. The Wall Street Journal report Intel had previously told the office of Ohio Governor Mike DeWine and Ohio’s congressional representatives that it was delaying ground-breaking due to “uncertainty” surrounding the bill.

Intel has been actively lobbying for the passage of the CHIPS Act. In April, CEO Pat Gelsinger again urged the passage of the bill, predicting that The ongoing global chip shortage will remain a challenge industry at least until 2024.

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