Intel CEO: Company moving 'full speed ahead' on Ohio plans after CHIPS Act passes Congress

Haley BeMiller, The Columbus Dispatch
·3 min read
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Intel CEO Pat Gelsinger said the company is ready to move "full speed ahead" on a plan to build semiconductor factories in central Ohio after Congress passed legislation Thursday deemed critical to the project.

The bill, known as the CHIPS Act, heads to President Joe Biden's desk for his signature after it also cleared the U.S. Senate this week. It will allocate more than $52 billion in subsidies for companies to research, design and manufacture semiconductors, and provide a 25% tax credit for companies that build facilities in the U.S.

"This is a critical step to support the entire U.S. semiconductor industry and to help ensure continued American leadership in semiconductor manufacturing and R&D," Gelsinger said in a statement. "Congress has done its part, and now we are going to do ours. I'm excited to put shovels in the ground as Intel moves full speed ahead to start building in Ohio."

All but four Ohio members of the U.S. House backed the bill. GOP Reps. Jim Jordan, Warren Davidson, Brad Wenstrup and Bob Latta voted no after House Republican leaders urged their members to oppose it.

Ohio Sens. Rob Portman and Sherrod Brown supported it, as well.

"My vote in favor of the CHIPS Act was a vote to support a once-in-a-lifetime investment in Ohio; protect critical national security interests; and provide opportunities for the people I represent by bringing good-paying jobs back to America," said U.S. Rep. Troy Balderson, R-Zanesville, whose district includes the Intel development. "This bill was far from perfect. But my constituents sent me to Washington to tend to the serious business of representing their interests – and to get the job done."

Enormous earthmoving machines are barely visible as work begins at the massive Intel chip manufacturing site in Licking County.
Enormous earthmoving machines are barely visible as work begins at the massive Intel chip manufacturing site in Licking County.

What does CHIPS Act do for Intel?

Intel announced in January that it will invest $20 billion to build two semiconductor factories in Licking County that will employ 3,000 workers. Gelsinger said the company's investment in Ohio could reach $100 billion, but only if the aid package is approved by Congress.

Gelsinger lobbied lawmakers and even delayed a groundbreaking on the Ohio development to pressure them into passing the bill.

Semiconductors play an increasingly vital role in powering today's economy. The tiny chips, typically as small as a fingernail, power everything from cell phones and appliances to military equipment vital to the nation's defense.

Proponents say the CHIPS Act is necessary to help businesses fill supply chain gaps and make the U.S. more competitive. The U.S. once produced 37% of the world's computer chips, but that's fallen to 12% because of high production costs and manufacturing investments by other countries, according to industry leaders.

Despite the bipartisan nature of the legislation, passage in the House became uncertain late Wednesday.

GOP leaders called on their members to oppose the CHIPS Act at the last minute because of frustration over a surprise deal between Democrats and Sen. Joe Manchin on a separate climate and health care bill. Meanwhile, U.S. Sen. Bernie Sanders' opposition raised questions over whether House progressives would follow suit.

"This is the first step toward an industrial policy in the United States of America, and it is time for us to quit the politics," said Rep. Tim Ryan, D-Warren, who is running for the U.S. Senate. "Stop trying to score political points. Stop putting party over country. Lay down our arms. My god, if we can’t agree on this, what the hell are we going to agree on?"

Ohio Gov. Mike DeWine said Ohio is going to become an "indispensable player" in the industry.

"As Intel begins construction in Licking County to bring its most advanced semiconductor manufacturing facilities to our state, Ohio is on its way to becoming an indispensable player in the semiconductor industry," DeWine said.

Haley BeMiller is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.

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This article originally appeared on The Columbus Dispatch: Chips Act: Four Ohio Republicans oppose bill pushed by Intel