Intel hints of delays in Ohio project if federal money isn’t approved

Intel is again urging Congress to pass a $ 52 billion aid package for the semiconductor industry, saying its plans to turn New Albany into one of the largest semiconductor manufacturing operations in the world are dependent on the aid.

The House and Senate have each passed legislation that would provide aid to the industry, dubbed the CHIPS Act, but have been slow to resolve differences as Intel and the Biden administration have repeatedly pushed Congress to finish its work.

“We are excited to begin construction on a new leading-edge semiconductor manufacturing plant in Ohio and grateful for the support of Governor DeWine, the state government and all our partners in Ohio. As we said in our January announcement, the scope and pace of our expansion in Ohio will depend heavily on funding from the CHIPS Act, ”the company said in a statement released Thursday.

“Unfortunately, CHIPS Act funding has moved more slowly than we expected and we still don’t know when it will get done. It is time for Congress to act so we can move forward at the speed and scale we have long envisioned for Ohio and our other projects to help restore US semiconductor manufacturing leadership and build a more resilient semiconductor supply chain. “

Intel’s statement was interpreted by some news outlets and by US Rep Tim Ryan, D-Niles, to mean that Intel was delaying the start of the New Albany project.

“Every day we waste by not passing the CHIPS Act funding is another day we fall further behind in our competition with China,” Ryan said in a press release. “This partisan gridlock has now caused a delay of a $ 20 billion economic shot in the arm for Ohio.”

Intel said late Thursday afternoon that work is continuing as planned for the New Albany factories but confirmed that it plans to delay the ground-breaking ceremony for the factories to dramatize the importance of the CHIPS Act.

Intel plans to build two factories, called fabs, in New Albany, a $ 20 billion project that is the state’s biggest economic development project. The factories will employ 3,000 workers with an average wage of $ 135,000.

It has said the project could ultimately have eight factories with a total investment approaching 100 billion, making it potentially the biggest semiconductor manufacturing site on Earth.

Intel has set no ground-breaking date for the project, but has said it expects to start construction this year.

The semiconductor industry has said the federal aid is necessary to bring production of semiconductors that are produced overseas.

Dispatch reporter Jim Weiker contributed to this report.

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BizMarkWilliams

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