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Researched by Industrial Info Resources (Sugar Land, Texas)--Intel Corporation (NASDAQ:INTC) (Santa Clara, California) and other developers of big semiconductor manufacturing plants in the U.S. are urging Congress to quickly greenlight $52 billion in funding to help support those projects. Future expansions of Intel's massive semiconductor plant in New Albany, Ohio, is contingent on the federal support, says the chipmaker.
Industrial Info is tracking 80 projects, worth more than $120 billion, that are tied to the production of semiconductors and related devices in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed project reports.
Click on the image at right for a chart showing active semiconductor investments by U.S. market region.
The Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act was passed by Congress as part of a more expansive measure aimed at boosting U.S. competitiveness on the global stage. However, that bill was stalled as legislators sought to work out its particulars. While both the House and Senate largely support the $52 billion CHIPS Act, other aspects of the bill have been contested for months. If the bill isn't passed before Congress' August recess, Congressional members will slide into the fall campaign season and subsequently the 2022 fall elections, and there's a good chance it won't be passed at all this year.
In January, Intel announced plans to build two chip manufacturing factories with an initial investment of more than $20 billion, which could grow to more than $100 billion with a buildout over the next decade. At the time, Intel said construction was expected to begin in late 2022, with operations expected to begin in 2025. Subscribers can click here for the project reports and click here for the plant profile.
At the time, Keyvan Esfarjani, Intel senior vice president of Manufacturing, Supply Chain and Operations, said, "The scope and pace of Intel's expansion in Ohio, however, will depend heavily on funding from the CHIPS Act."
Intel has postponed a planned groundbreaking ceremony in July, citing its concerns over the fate of the CHIPS Act.
In a June 8 statement, Intel said, "As the world comes to grips with chip shortages due to supply-chain disruptions and ripple effects from the global pandemic, Intel's leaders are urging Congress to fund the CHIPS for America Act to create a more stable future for the U.S. tech industry."
The chipmaker said in 1990, 80% of the world's semiconductors were produced in the U.S. and Europe, adding, "Today, 80% are produced in Asia, where countries provide substantial incentives to domestic semiconductor industries. This helps create a 30% to 50% cost disadvantage for companies that produce semiconductors in the U.S."
Led by the Semiconductor Industry Association, more than 120 company executives signed a letter urging Congress to pass a bill containing the CHIPS Act, along with the Facilitating American-Built Semiconductors (FABS) Act, which provides an investment tax credit for the U.S. semiconductor industry.
On Monday, U.S. Secretary of Commerce Gina Raimondo also put more heat on Congress to pass the measure, telling CNBC that "Congress really better get its job done and do so quickly."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Industrial Info is tracking 80 projects, worth more than $120 billion, that are tied to the production of semiconductors and related devices in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed project reports.
The Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act was passed by Congress as part of a more expansive measure aimed at boosting U.S. competitiveness on the global stage. However, that bill was stalled as legislators sought to work out its particulars. While both the House and Senate largely support the $52 billion CHIPS Act, other aspects of the bill have been contested for months. If the bill isn't passed before Congress' August recess, Congressional members will slide into the fall campaign season and subsequently the 2022 fall elections, and there's a good chance it won't be passed at all this year.
In January, Intel announced plans to build two chip manufacturing factories with an initial investment of more than $20 billion, which could grow to more than $100 billion with a buildout over the next decade. At the time, Intel said construction was expected to begin in late 2022, with operations expected to begin in 2025. Subscribers can click here for the project reports and click here for the plant profile.
At the time, Keyvan Esfarjani, Intel senior vice president of Manufacturing, Supply Chain and Operations, said, "The scope and pace of Intel's expansion in Ohio, however, will depend heavily on funding from the CHIPS Act."
Intel has postponed a planned groundbreaking ceremony in July, citing its concerns over the fate of the CHIPS Act.
In a June 8 statement, Intel said, "As the world comes to grips with chip shortages due to supply-chain disruptions and ripple effects from the global pandemic, Intel's leaders are urging Congress to fund the CHIPS for America Act to create a more stable future for the U.S. tech industry."
The chipmaker said in 1990, 80% of the world's semiconductors were produced in the U.S. and Europe, adding, "Today, 80% are produced in Asia, where countries provide substantial incentives to domestic semiconductor industries. This helps create a 30% to 50% cost disadvantage for companies that produce semiconductors in the U.S."
Led by the Semiconductor Industry Association, more than 120 company executives signed a letter urging Congress to pass a bill containing the CHIPS Act, along with the Facilitating American-Built Semiconductors (FABS) Act, which provides an investment tax credit for the U.S. semiconductor industry.
On Monday, U.S. Secretary of Commerce Gina Raimondo also put more heat on Congress to pass the measure, telling CNBC that "Congress really better get its job done and do so quickly."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
