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

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 told The Verge (via The Washington Post and The Wall Street Journal). gave information. to be confirmed. The 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 could potentially include eight plants "with funding from the CHIPES Act". will be extended to A lot will depend on it." The CHIPS Act reserves a $52 billion fund for semiconductor companies, including Intel, to promote chip manufacturing in the US. While the Senate and House have approved their versions of the bill, Congress has to The movement has stopped when it is finalised.

According to an email seen by the WSJ, Intel told US lawmakers and government officials that it is delaying the ceremony "due to the uncertainty surrounding the Chips Act." In a statement to The Verge, Intel 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 says. Although Intel has delayed its groundbreaking ceremony, Moss says it hasn't given up on plans to start 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." should receive." 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 The Post noted, officials are concerned that Congress's slow action on the bill could divert semiconductor companies 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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