Intel delays ceremony for Ohio factory over lack of government funding

Illustration by Alex Castro / The Verge

According to The Wall Street Journal, Intel is postponing the ceremony for its planned chip-making facilities in Ohio because the US government hasn't provided it with funding. The ceremony, which was supposed to take place on July 22nd, has been delayed indefinitely in order to push the US government to pass the CHIPS Act.

Intel said that its expansion to include up to eight plants will depend heavily on funding from the CHIPS Act. Intel is one of the companies that gets funding from the CHIPS Act. The Senate and House have approved their own versions of the bill, but Congress has yet to approve it.

According to an email seen by the WSJ, Intel told US lawmakers and government officials that it was postponing its ceremony due to uncertainty surrounding the CHIPS Act. The scope and pace of the company's project depend on funding from the CHIPS Act. The CHIPS Act funding has moved more slowly than expected and we don't know when it will get done.

Moss wants Congress to act so the company can move forward at the speed and scale it needs for its projects in and outside of Ohio. Moss says that Intel hasn't pushed back plans to build its facilities. Production is set to start in 2025.

House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer expressed their belief that the chip-related legislation should be passed in July.

The final version of the CHIPS Act needs to be passed before the Congressional recess in August. According to The Post, officials are worried that the slow action on the bill could cause companies to look at other countries.

US Commerce Secretary Gina Raimondo warned about this possibility in a statement to CNBC in May. The CHIPS Act is going to be lost if Congress doesn't pass it quickly. Raimondo stated that future facilities are going to be built by the companies.