The Chips Act, a law that should promote the construction of semiconductor factories in the United States, is slow to be validated by Congress. Intel found a way to pressure Congress.
On July 22, Intel had planned to inaugurate the construction of its new factory in Ohio, a symbol of the company’s desire to invest massively in the United States to produce more chips locally. Finally, the ceremony will take place… on an undetermined date. A way for Intel to put pressure on Congress which, despite the commitments made under the mandate of Donald Trump, is slow to validate the promises made under the Chips Act.
Intel had announced last January some 20 billion dollars of investment for the construction of two huge factories in Ohio. Eventually, this site could house up to eight production units and become the largest processor manufacturing site in the world. But to build it, Intel is also counting on government aid through the provisions of the Chips Act and its 52 billion dollars reserved for foundries who decide to repatriate part of their production to American soil. Problem, the finalized text is still waiting in Congress.
It’s starting to feel urgent
“Unfortunately, funding for the Chips Act has moved slower than expected and we still don’t know when it will become a reality”confirms William Moss, spokesperson for Intel, to The Verge. An uncertainty that pushes Intel to be cautious, and to declare: “Now is the time for Congress to act”. Depending on how long the aid will take to be validated, Intel still hopes to be able to start construction of its factory at the end of 2022, which would allow the company to burn its first commercial processor there in early 2025.
On the government side, there is also pressure on Congress to act on the Chips Act, lest the text be dealt with before the August recess. Nancy Pelosi, Speaker of the House of Representatives, and Chuck Schumer, Senate Majority Leader, both said they saw no obstacle to the approval of this law by Congress in July. Commerce Secretary Gina Raimondo gave a layer of it: “If Congress does not hurry, we will lose positions on this. Intel, Micron, Samsung, they will not wait for us to grow, even if it means setting up their factories elsewhere”.