Congress approves bill to speed up construction of new microchip plants, including Intel facility in Ohio

[Daniel Nenni]

An aerial view from February 2024 shows construction progress at Intel's Ohio One campus of nearly 1,000 acres in Licking County, Ohio. Intel announced plans in January 2022, to invest more than $20 billion in the construction of two new leading-edge chip factories in Ohio. The company broke ground in September 2022. The investment will serve the needs of Intel Foundry customers as part of the company’s IDM 2.0 strategy.Intel Corp. via Associated Press

WASHINGTON, D. C. - The U.S. House of Representatives on Monday approved bipartisan legislation that will streamline federal reviews for microchip manufacturing facilities such as a $20 billion factory that Intel is building outside Columbus.

The bipartisan Building Chips in America Act of 2023, whose cosponsors include U.S. Sen. Sherrod Brown of Cleveland and U.S. Rep. Emilia Sykes of Akron, passed the House by a 257 to 125 margin, with support from every Ohioan except Columbus Democrat Joyce Beatty. Since it passed the Senate unanimously in December, it now heads to President Joe Biden’s desk to be signed into law.

“This legislation will help prevent delays to the semiconductor manufacturing projects the CHIPS Act made possible and will encourage future investments in American manufacturing,” said a statement from Brown. “This is critical to Intel’s project in Licking County and to ensure that we can outcompete China.”

Supporters, like U.S. Sen. Sherrod Brown, highlight its potential to bolster U.S. manufacturing competitiveness, particularly against China. However, opponents, such as U.S. Rep. Summer Lee, raise concerns about environmental impacts, citing past pollution from chip manufacturing.

Despite Intel Corporation’s recent financial setbacks, Ohio officials remain confident that the project, expected to employ 3,000 workers by 2027-2028, will proceed. This factory represents a significant step for domestic chip production and economic development in Ohio.

Congress approves bill to speed up construction of new microchip plants, including Intel facility in Ohio

“This legislation will help prevent delays to the semiconductor manufacturing projects the CHIPS Act made possible and will encourage future investments in American manufacturing,” said a statement from U.S. Sen. Sherrod Brown, a Cleveland Democrat.

www.cleveland.com

Rep Peters’ Bill to Speed Up CHIPS Act Investments Passes Congress, Heads to President’s Desk

Congressman Scott Peters

scottpeters.house.gov

 

[MKWVentures]

While I love to complain about red tape ... I dont think the government is slowing the start up of Ohio. It will be built when Intel needs the capacity. But we need to focus on Arizona first.

 

[osnium]

While I love to complain about red tape ... I dont think the government is slowing the start up of Ohio. It will be built when Intel needs the capacity. But we need to focus on Arizona first.

It will speed up construction of TSMC’s new fabs in Phoenix (aka New Hsinchu).

 

[Daniel Nenni]

While I love to complain about red tape ... I dont think the government is slowing the start up of Ohio. It will be built when Intel needs the capacity. But we need to focus on Arizona first.

I would like to think the politicians are playing chess with Intel and are trying to ensure/speed the Ohio build.

Unfortunately, US politicians play checkers to get re elected.

 

[hist78]

I would like to think the politicians are playing chess with Intel and are trying to ensure/speed the Ohio build.

Unfortunately, US politicians play checkers to get re elected.

On the other hand, it’s taxpayers' money at stake. Intel needs to demonstrate that it is trustworthy and accountable. From 2018 to Q1 2021, Intel spent almost $41 billion in cash to buy back its own stock, purely to boost or stabilize its stock price. Now, Intel needs cash—and a lot of it—to improve its accounting book. At 56 years old, Intel resembles more of a spoiled child than a mature, responsible adult.

Intel is asking taxpayers to pay for its own mistakes. We can't just complain about the milestone requirements demanded by the CHIPS Act subsidy while ignoring how Intel spent billions on financial gimmicks, rather than reinvesting in itself to become more competitive.

 

[siliconbruh999]

On the other hand, it’s taxpayers' money at stake. Intel needs to demonstrate that it is trustworthy and accountable. From 2018 to Q1 2021, Intel spent almost $41 billion in cash to buy back its own stock, purely to boost or stabilize its stock price. Now, Intel needs cash—and a lot of it—to improve its accounting book. At 56 years old, Intel resembles more of a spoiled child than a mature, responsible adult.

Intel is asking taxpayers to pay for its own mistakes. We can't just complain about the milestone requirements demanded by the CHIPS Act subsidy while ignoring how Intel spent billions on financial gimmicks, rather than reinvesting in itself to become more competitive.

Bob swan stabilized the stock but didn't stabilize the company
Stock buy backs are good but you should never forget investment in company core products all the MBA allowed intel to run with inefficiency for at least a decade

 

[MKWVentures]

Bob swan stabilized the stock but didn't stabilize the company
Stock buy backs are good but you should never forget investment in company core products all the MBA allowed intel to run with inefficiency for at least a decade

Again Intel did tons of investment. Still spends more on R&D than competitors. They just are not good at delivering or being efficient in manufacturing. Intel was doing AI accelerators long before nvidia took off..... they just didnt work.

 

[MKWVentures]

I would like to think the politicians are playing chess with Intel and are trying to ensure/speed the Ohio build.

Unfortunately, US politicians play checkers to get re elected.

There is no need for Ohio yet. Its not a Chips act thing. Hopefully Intel will need Ohio by 2028 or 2029.

The last thing Intel needs is to accelerate Ohio.

 

[hist78]

Bob swan stabilized the stock but didn't stabilize the company
Stock buy backs are good but you should never forget investment in company core products all the MBA allowed intel to run with inefficiency for at least a decade

"Stock buy backs are good".

In Intel's case, stock buy back is a suicidal action. It depleted Intel's cash reserve and missed the opportunity to improve its financial standings, build up the reserve for rainy days, and make sufficient investment for the future. It tragically achieved the sorry stock price we are seeing today.

If we compare it with the stock buy back program Berkshire Hathaway has done, it's totally two different stories, different disciplines, different levels of integrity, and different results.