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Intel planned to hold a groundbreaking event at its new Ohio plant in July. Now these plans are on hold. The July 22 event has been postponed, and Intel says it’s up to Congress to hold it at all. Intel calls on national legislators to pass the CHIPS Act. This would free up funds that Intel planned to receive to help cover the cost of building the new mega-factory near Columbus.

The essence of the dispute is about funding. The CHIPS Act was first passed by the Senate in the summer of 2021. It has since been mired in a legislative crisis. The House of Representatives embezzled $ 52 billion for him in February. Since then, however, the two chambers have been unable to combine their accounts and hand over the sucker. IN Washington Post reports that lawmakers have been delayed by disputes over issues unrelated to silicon production. These issues include climate policy, trade with China and more recent issues such as the financing of the war in Ukraine. However, the clock is ticking as lawmakers leave the city in August for a month-long vacation. When they return, they are likely to be distracted again by the upcoming by-elections.

3D rendering of Intel’s megafab in Ohio. (Image: Intel)

An Intel spokesman emailed the Post about the situation. “As we said in our January announcement [announcing the Ohio location], the scope and pace of our expansion in Ohio will depend to a large extent on funding from the CHIPS Act. Unfortunately, funding under the CHIPS Act is moving slower than we expected and we still do not know when it will be done. It’s time for Congress to act so we can move forward with the speed and scale we’ve long envisioned for Ohio and our other projects. “

Intel has already pledged to spend $ 20 billion on the facility, but the final cost could reach $ 100 billion. Intel says its plans could change if it does not receive the subsidies it hoped to receive from Uncle Sam. He is also the recipient of a generous $ 2 billion package from Ohio. Intel says the site will eventually provide 3,000 jobs for Intel employees. It will also create 7,000 jobs during its construction. Intel also clarified that the delay in funding will only affect its plans for the Ohio plant. It will not affect its planned expansion at the Chandler plant in Arizona.

Intel is not the only company waiting for Congress to come together. Last week, more than 100 CEOs from technology companies such as Microsoft and Google send a letter to Congress with a request for action on the legislation. “The rest of the world is not waiting for the United States to act. “Our global competitors are investing in their industry, their workers and their economies, and it is imperative that Congress act to make the United States more competitive,” the letter said.

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