Patrick Gelsinger, Intel CEO at the WEF in Davos, Switzerland, on May 23. 2022.
Adam Galica | CNBC
Large chip factories in the early stages of construction outside Columbus, Ohio, may be reduced in scope or delayed in construction, depending on what Congress does under the CHIPS Act. Intel I said in a statement on Thursday.
The facility is publication In January, it will be the most significant expansion of US-based semiconductor manufacturing in the years. Intel estimates that the cost of the plant will be as high as $ 100 billion and has promised an initial investment of $ 20 billion.
“We are pleased to begin building a new state-of-the-art semiconductor manufacturing plant in Ohio. We thank the Governor of Ohio, the state government, and all of our partners for their support. As stated in the January announcement. In addition, expanding business in Ohio will rely heavily on funding from the CHIPS Act. “
“Unfortunately, CHIPS law funding is slower than expected and we do not yet know when it will be completed. We are regaining Ohio and US semiconductor manufacturing leadership and a more resilient semiconductor supply chain. Other projects to build. “
Part of Intel’s facility plan included a subsidy from the US government under the CHIPS Act. It has the potential to fund $ 52 billion in computer chip manufacturing from the US government to facilitate semiconductor manufacturing and research. The bill was passed by the Senate last summer, but the law has not yet been signed.
CHIPS method stall Lawmakers are trying to figure out the difference between the two competing bills passed by each chamber of commerce almost last year. Financing semiconductors is only part of a wide range of packages that must go through the negotiation process.
Intel is continuing to work on the $ 20 billion investment announced earlier this year, a spokesman told CNBC, but if the CHIPS law isn’t passed by Congress, the $ 100 billion investment is uncertain. Intel CEO Pat Gelsinger is in Washington, DC on Thursday to discuss the bill with lawmakers.
A groundbreaking ceremony for the Ohio plant is still scheduled for fall, a spokeswoman said.
The Biden administration welcomed the Ohio factory as an example of the president’s efforts to increase manufacturing capacity in the United States. Gelsinger was a guest of Biden in the State of the Union address earlier this year.
“Travel 20 miles east of Columbus, Ohio and you’ll find 1,000 acres of vacant lot. Not many, but if you stop and take a closer look, you’ll see the’Dream Field’. The ground on which the future of America will be built. This is where Intel, an American company that helped build Silicon Valley, will build a $ 20 billion semiconductor “megasite.”
Currently, most high-end chips are manufactured in Taiwan and South Korea, and US officials say increasing the amount of semiconductors manufactured in US and European soils is important for national security.
Intel’s share price remained almost unchanged in the news, dropping less than 1% during Thursday’s trading.
— CNBC’s Lauren Feiner contributed to this story.