Electronics

If U.S. fails to implement chip subsidy bill, it will prioritize building factories in Europe: Intel

According to the latest report, Intel Chief Executive Officer (CEO) Pat Gelsinger warned that if the U.S. Congress cannot act on a long-delayed chip subsidy bill, and Intel will prioritize building factories in Europe over the United States.

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In January of this year, Intel announced that it will build two new chip manufacturing plants in the suburbs of Columbus, Ohio. Construction of the new plant is expected to start this year and start production in 2025, with an initial investment of $20 billion.

Intel hopes to push the construction of the Ohio factory as soon as possible because the new factory can be used not only to produce its own processors but also to manufacture chips designed by other companies.

Intel said in a January press release that the scope and speed of the company’s expansion in Ohio will depend heavily on funding from the CHIPS Act for America. It is reported that the “American Chip Act” will allow the U.S. government to allocate $52 billion for semiconductor companies, including Intel, to subsidize chip manufacturing and research in the United States.

Although the U.S. Senate and House of Representatives have approved their respective versions of the bill, finalizing the bill has stalled in the U.S. Congress, which has yet to allocate the money semiconductor companies need. Meanwhile, European and Asian countries have offered incentives worth billions of dollars.

According to the sources, Kissinger has been pressuring the U.S. Congress for nearly a year to approve the “American Chip Act”, but with little success.

On June 23 this year, Intel said in a statement: “Unfortunately, funding based on the American Chip Act has been slower than we expected, and we still don’t know when it will be completed.” Intel has warned that the construction of its chip factory in Ohio will be delayed due to the slow progress of the American Chip Act.

Shortly after issuing the warning, Intel told U.S. lawmakers and government officials that it would delay the groundbreaking ceremony for its planned chip factory in Ohio because the U.S. government had not yet provided it with construction funding.

It is reported that Intel was originally scheduled to hold the groundbreaking ceremony for its Ohio chip factory on July 22, but it has now been postponed indefinitely.

(via)


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