(The Center Square) – The Ohio Chamber of Commerce and nearly 20 business groups from four states want the Biden administration to start handing out money from the CHIPS Act immediately.
In a letter, the groups from Ohio, New York, Oregon and New Mexico want the money distributed now. Intel has said the money is critical to its plan for the ongoing development of its massive manufacturing facility in central Ohio that could lead to 3,000 direct jobs and thousands of other related jobs.
“The CHIPS Act passed over two years ago, and these funds are long overdue to reach domestic chipmakers across the United States,” Ohio Chamber President and CEO Steve Stivers said. “It is disappointing that manufacturers that are either based in or operating in the United States, or both, that employ thousands of Americans and contribute to a robust supply chain across the country, are still waiting to receive funds from commitments made by the U.S. Department of Commerce, Department of Defense, and other federal agencies to capitalize on the opportunity to reestablish the United States as the global leader in semiconductor manufacturing.”
The CHIPS Act is more formally the Creating Helpful Incentives to Produce Semiconductors and Science Act, signed into law by President Joe Biden in August 2022. Final roll call votes were 64-33 in the Senate and 243-187 in the House of Representatives.
The letter to Biden comes after President-elect Donald Trump criticized the legislation during the campaign that provides incentives for the nation’s semiconductor industry to establish U.S. manufacturing.
Earlier this month, U.S. House Speaker Mike Johnson said Republicans would probably try to repeal the act that Ohio Republican leaders have praised for years and led Intel to announce a $4.5 billion commitment to the state in the largest single private-sector investment in state history.
Communities throughout central Ohio also welcomed Intel’s announcement and scrambled to develop plans for expected expanding schools, as well as housing and infrastructure needs.
In a news conference following his Election Day win, Ohio Republican U.S. Sen.-elect Bernie Moreno said the commitment to Intel should be honored but also said the decision should be up to Trump.
The letter encourages the Biden administration to “remove any roadblocks that may exist, ensuring that the funds highlighted as critical to the success of the objectives of these laws are delivered as promptly as possible.”
Signing the letter were the Oregon Business & Industry, New Mexico Chamber of Commerce, The Business Council of New York State, Ohio Council of Retail Merchants, Ohio Business Roundtable, Oregon Business Council, Technology Association of Oregon, Ohio Hotel and Lodging Association, Ohio Home Builders Association, Ohio Society of CPAs, Ohio Pharmacists Association, Ohio Auto Dealers Association, Ohio Realtors, Ohio Chemistry Technology Council, Ohio Bankers League, Rio Rancho (New Mexico) Regional Chamber of Commerce and Sandoval (New Mexico) Economic Alliance.
In its first progress report required to Ohio leaders, Intel said in March it had spent $1.5 billion and committed another $3 billion to the project in the Columbus suburb of New Albany. The project includes $2 billion in incentives for the two planned microchip manufacturing facilities in Licking County, including taxpayer-funded grants and tax incentives.
Intel’s contract with Ohio says it must meet its job-creation goals by 2028.
Recently, however, Intel reported laying off 15% of its workforce in a cost-saving move.
As previously reported by The Center Square, the U.S. Department of Commerce and Intel reached a nonbinding preliminary memorandum of terms in March to offer up to $8.5 billion in direct funding from the CHIPS Act to the company in hopes of creating jobs and logic chips in four states.
Intel plans to invest more than $100 billion in the United States over the next five years. It also plans to expand its operations in Arizona, New Mexico, Ohio, and Oregon, which it estimates will create over 10,000 manufacturing jobs and nearly 20,000 construction jobs, according to a statement from the U.S. Department of Commerce.
