Intel Reveals Why It's Delaying A $20 Billion Mega Chip Plant In Ohio
One of the reasons cited for the delay is the apparent slow pace with which the US government is handing out subsidies related to the Chips Act. Companies such as Intel have been making a concerted push to expand production in the United States because of the expectation that government funding would be coming. Intel isn’t the first company to have issues with the rollout of these funds, either, with Samsung having a similar experience with a chip plant facing delays in Texas.
This will likely be unwelcome news for the current administration, which is trying to increase domestic chip manufacturing as the relationship between the United States and China continues to be tense. Getting these facilities up and running is already a tall task under the best of circumstances, so running into delays because funds are being held up is the last thing the administration needs.
However, the promised funding isn’t the only reason Intel is slowing its project down. People are now spending less money on technology than they did during the height of the pandemic, which is a shift the computer industry is still adjusting to. It makes it harder for Intel to invest so heavily in expanding production when it’s expected people will be buying less things with the chips Intel makes.
Once the project is completed it will be one of the largest Intel will have in the United States—and eventually the largest semiconductor chip fab on the planet—and it will play a big role in helping the country becomes less reliant on importing this important technology. That's barring any further delays, anyway.
