Intel piles on pressure over uncertain outcome in chips legislation

Intel piles on pressure over uncertain outcome in chips legislation

San Francisco, 6/25/2022

Intel announced it is postponing the groundbreaking for its new chip plant in Ohio, citing uncertainty over stalled CHIPS legislation.

Intel commented that the scope of the project could be scaled back depending on the outcome of the CHIPS bill, which includes $52 billion in incentives to boost U.S. semiconductor production.

Intel plans to initially invest more than $20 billion in the plant near Columbus, a project that CEO Pat Gelsinger expects to become „the largest silicon manufacturing site in the world.“

The scope and timing of the project, however, depend „heavily on CHIPS Act funding,“ according to the company. Intel still plans to begin construction before the end of the year. The first two chip fabs are expected to be operational in 2025.

Intel plans to build eight fabs worth $100 billion at the „mega site“ in New Albany within 10 years. The final size of the site depends on what happens with the CHIPS Act, according to the company.

The U.S. Senate originally passed its version of the bill last year. Now a compromise is being sought with the House of Representatives to iron out the differences between the two competing versions.