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On June 26, Intel, a chip giant, told U.S. lawmakers and government officials that because the government had not provided construction funds for it, the company would delay the foundation laying ceremony of its planned chip factory in Ohio

intel was originally scheduled to hold the foundation laying ceremony on July 22, but now it has been postponed indefinitely. Intel has informed the office of Ohio Governor Mike dewine and members of the Ohio congressional delegation that the company will delay this breakthrough "in part because" there is uncertainty about chip related legislation

Intel announced earlier this year that it would spend US $20billion to build two semiconductor plants in New Albany, Ohio. The expenditure on projects in Ohio in the next decade may reach about US $100billion. However, the company pointed out that its huge plan to expand to up to eight factories would "rely heavily on the funding provided by the chip act"

although the foundation laying ceremony is only symbolic, the decision to postpone the ceremony shows that Intel is disappointed with the progress of chip legislation. The chip act will allocate $52billion to semiconductor companies including Intel to promote chip manufacturing in the United States. Although the US Senate and house of representatives have approved their respective versions of the bill, the action to finalize the bill has stalled in Congress

in an email statement, Intel spokesman William moss reiterated: "the scale and speed of the company's projects depend on the funding provided by the chip act. Unfortunately, the progress of the chip act itself is slower than we expected, and we still do not know when it will be implemented."

moss continued: "it is time for Congress to take action so that the company can advance our projects in Ohio and elsewhere at the same speed and scale." Although Intel postponed the foundation laying ceremony, moss said that the company did not delay the plan to start the construction of the plant. Intel predicts that the construction of the plant will be started at the end of 2022 and put into operation in 2025

President Biden has repeatedly pointed out that the investment in Ohio is a key to the development of manufacturing industry and a sign that the United States plays a greater role in the global semiconductor industry. He also mentioned Intel's investment plan in the state of the Union address and personally met with Intel CEO pat Gelsinger

Nancy Pelosi, speaker of the US House of Representatives, and Chuck Schumer, leader of the Senate majority party, issued a statement after a meeting on chip related legislation, saying: "we see no reason not to pass this bill in Congress in July."

the US Congress is facing increasing pressure from Intel and other government officials to pass the final version of the chip bill before the Congress recess in August. Because officials are worried that the slow action of Congress on the bill may cause semiconductor companies to divert their attention from the United States

in May this year, U.S. Commerce Secretary Gina Raimondo warned of this possibility in a statement and urged Congress to pass the chip bill. She said at that time: "if Congress does not pass or quickly pass the chip bill, we will lose opportunities in this field. Intel, micron, Samsung and other companies are expanding, and they will build more future facilities. "

according to people familiar with the matter, Intel recently told members of Congress that the company would give priority to the construction of factories in other countries that have approved the incentive plan for new factories. Earlier this year, the company announced its plan to invest billions of dollars in Europe.

Europe is promoting a 43billion Euro incentive and investment package, with the goal of increasing Europe's share in global chip production by one percent by 2030 Times, up to 20%. People familiar with the matter said that Kissinger had pointed out to Biden administration officials and lawmakers that Europe seemed to move faster than the United States

as Intel and other chip companies seek government funding, there is growing concern in the United States and Europe that the supply chain of this key industry is too concentrated in Asia. The COVID-19 has interrupted the supply, resulting in a global shortage of chips. Both from the economic and national security point of view, it highlights the importance of chips

however, the funding of chip projects by the two major political parties in the United States has not been passed in Congress as quickly as many industry executives hoped. According to people familiar with the matter, chip companies are not very confident that Congress can pass the chip bill before the mid-term elections in November

in recent years, Intel and its two major Asian competitors, TSMC and Samsung, have announced that they will build new factories in the United States. Among them, TSMC is building a new plant in Arizona and Samsung Electronics is building a new plant in Texas. Although the government has made slow progress in providing incentive plans, neither company has announced any change of plans

Intel is also accelerating its expansion outside its new plant in Ohio. The company is building large plants in Arizona and Germany and upgrading manufacturing facilities in New Mexico. (small)

2023-03-22 10:04:53