(TNS) — Intel is getting federal funding it says it needs to build a semiconductor manufacturing plant in the Columbus area.
The Biden administration announced that the U.S. Department of Commerce has awarded up to $7.865 billion in direct funding to Intel under the CHIPS incentive program for commercial manufacturing facilities.
The award will support Intel’s expected nearly $90 billion investment in the Columbus region by the end of 2020, part of the company’s overall expansion plan of more than $100 billion, the administration said. Ta. The government said it would disburse the funds based on Intel’s completion of “milestones” of the project.
State leaders have been pushing for the creation of the fund for months.
Ohio Gov. Mike DeWine and Lt. Gov. Jon Husted called the news “a much-needed step toward the important goal of manufacturing cutting-edge computer chips in the United States” in a joint statement early Tuesday. ” he said.
“The DeWine Husted administration has never wavered from its commitment to attracting these chip manufacturing plants to Ohio. The effort to build a silicon capital is now moving more firmly forward and in the interests of American workers. “Advancing the economy and national security for ‘Ohio and America,'” the men said.
“The CHIPS for America program will strengthen American innovation and technology and make our nation safer, and Intel is committed to supporting the American semiconductor industry through unprecedented investments across Arizona, New Mexico, Ohio, and Oregon. ” said U.S. Secretary of Commerce Gina Raimondo.
Intel’s planned investment had ripple effects throughout the state. In Dayton, Libra Industries will invest $1.8 million in a 5,000-square-foot clean room to better serve semiconductor industry customers and expects to add up to 26 employees to its workforce I’m doing it.
Intel is building the two factories at the same time, starting construction in late 2022, said Linda Chen, communications director for the California-based company’s Ohio community relations team. As of May this year, there were 1,000 construction workers on site, but the company expects this number to rise to 7,000.
“Today’s announcement strengthens America’s national security and enables microchip manufacturing to take place in the United States,” said Steve Stivers, president and CEO of the Ohio Chamber of Commerce. It’s a great day,” he said in a statement.
While the funding would be welcome, Intel faces significant challenges, having laid off thousands of employees and (according to some reports) being eyed as a potential acquisition target. S&P Global announced this month that Nvidia will replace Intel’s stock in the Dow Jones Industrial Average.
Intel CEO Pat Gelsinger announced in September that the company would spin off its $20 billion computer chip manufacturing facility in New Albany, Ohio, into a new company as part of a restructuring. . These factories will become subsidiaries of Intel.
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