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Intel Puts Inauguration of 20A (2nm) Ohio Foundry on Hold as US Congress Delays Funding; Fabs in Europe with Subsidies to be Prioritized

Intel has decided to put the inauguration of its cutting-edge Ohio foundry campus on hold. As a direct result of the uncertainty surrounding the US CHIPS Act, the chipmaker has stated that it plans on focusing efforts on other countries where funding is assured. This probably refers to the subsidies offered by the EU and Germany at the Magdeburg site. Team Blue has been granted a massive sum of €6.8 billion in subsidies from the EU and regional governments, set to be disbursed by the end of 2024.

The $52 billion CHIPS Act has been stalled in the US Congress for quite a while despite repeated appeals from the chip giant on the importance of expanding production in domestic fabs. The $20 billion Ohio mega-fab planned to enter construction by the end of the year is supposed to be the primary benefactor of this funding.

The inauguration ceremony for the Ohio site was originally planned for the 22nd of July but has been indefinitely delayed “due in part to uncertainty around” the stalled Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act. This fab complex would help bolster the production of next-generation process nodes, most notably 20A (2nm), 18A (1.8nm), etc.

Intel spokesperson Will Moss has told The Register that the construction of the fab is still planned for late 2022 but the inauguration will be held “at some point” later this year. The company plans to spend as much as $100 billion on the fab site over the next decade but has repeatedly stated that the scope and pace of expansion will depend heavily on funding from the CHIPS Act.

Intel CEO Pat Gelsinger recently told lawmakers that his company would focus on construction projects overseas where subsidies have already been approved. This likely refers to the Magdeburg site where local authorities have already allocated $7.7 billion in subsidies, set to be disbursed by the end of next year.

Source: The Register

Areej

Computer hardware enthusiast, PC gamer, and almost an engineer. Former co-founder of Techquila (2017-2019), a fairly successful tech outlet. Been working on Hardware Times since 2019, an outlet dedicated to computer hardware and its applications.