Intel has made it clear that its expansion plans in the US partially hinge on government subsidies. Speaking live with the Washington Post earlier this week, Intel CEO Pat Gelsinger made it clear that if the US Innovation and Competition Act (or USICA) isn't approved on the floor of Congress, the company will be seeking greener pastures across the Atlantic - namely in Europe, where the EU has been aggressively moving to increase local leading-edge chip manufacturing.
"We've made super clear to McConnell, to the Democrats, to the Republicans, that if this doesn't pass, I will change my plans," Gelsinger said. "The Europeans have moved forward very aggressively, and they're ready to give us the incentives that allow us to move forward," he said, likely referring to the Silicon Junction initiative, which saw the EU open up its strings to a cool $43 billion in support for local manufacturing capabilities.
The measure is currently languishing on the Congress floor due to differences in opinion between Republicans and Democrats. The USICA bill would allocate up to $52 billion in incentives for semiconductor initiatives on US soil, and saw the creation of the Semiconductors in America Coalition (SIAC) lobbying group.
The point of contention mostly lies in that Democrats could attempt to approve it as part of a broader reconciliation package that would allow Medicare to negotiate prices with drug manufacturers, which would help control prescription drug prices while putting a cap on insulin prices.
Senate Minority Leader Mitch McConnell, in a tweet, didn't mince words on whether USICA would pass on the floor:
Let me be perfectly clear: there will be no bipartisan USICA as long as Democrats are pursuing a partisan reconciliation bill.June 30, 2022
Following the turmoil in approving the bill, Intel has already (and indefinitely) delayed the groundbreaking ceremony for its planned Ohio fab from its planned July 22nd date.
Besides creating 3,000 Intel jobs, 7,000 construction jobs, and tens of thousands of indirect local long-term jobs, Intel had committed to investing $100 million in partnerships with local educational organizations.
Ten days ago, we took delivery of the land in Ohio for our new Mega fab. We have equipment in place and have started prep work for beginning major construction, but … we are still waiting on Congress to act. pic.twitter.com/HC8F8cYPoIJuly 12, 2022
Intel's plan for Ohio involves a Mega Site, whose investment is expected to reach a fat $100 billion. Intel's timelines indicate that the company would be looking to manufacture chips within its Angstrom era of electronics, namely under the planned Intel 25A and Intel 18A nodes (which will be among the most advanced manufacturing technologies in 2025).
The fast-approaching deadline for USICA to successfully cross the Congress floor - which enters its recess in August - prompted Secretary of Commerce Gina Raimondo to lead a classified briefing with senators on Wednesday. The purpose of the meeting: to stress the dire need to pass the $52 billion-worth bill in a geopolitical environment where China grows increasingly relevant in the high-tech space.
The CHIPS Act is an investment in US technological leadership, our economy, and our national security. It is a national imperative and Congress must act in a bipartisan manner to get it funded. https://t.co/sZBP8y0Bj7July 7, 2022
“The message is, ‘Time’s up,’” Secretary of Commerce Gina Raimondo told CNN after the briefing. “It’s time to make it happen."
