Subsidies in the US Chips Act: Industry puts the gun to the US Congress' chest

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The same multiple “threats” in a few days are putting pressure on politicians in the US to finally pass the US Chips Act. Because after big announcements in winter and spring, there has been quite a standstill, as the two highest committees are arguing about the final formalities – primarily about the money.

Once again, of course, it is the busy Intel CEO Pat Gelsinger who wants the money from the US government for his construction projects. When it was presented, the mega complex in Ohio was celebrated in the media with many prominent politicians, who are supposed to ensure that Intel receives the subsidies. But now at least the laying of the foundation stone has been put on hold, and Gelsinger himself says that's a big signal – but not a good one.

I hate the idea of ​​announcing a delay .. The idea of ​​delaying … this sucks… I am not a delay guy.

[..]

Everyone saw our announcement of our delay and it is a huge signal to the industry to get the shovels in the ground and the U.S. serious about building this industry back on U.S. soil.

Intel CEO Pat Gelsinger

According to CNBC, in his further remarks he now brings into play that Intel could focus on Europe without the rapid implementation of the US Chips Act. After a lead of almost a year, the US government has finally fallen behind even behind the EU Chips Act. Intel is already receiving the first funds for the new factory in Germany. In 2022 alone, Intel is to receive 2.72 billion euros (PDF document), in total it could be around 6.8 billion euros.

But Gelsinger is not alone. The head of GlobalWafers, who only announced her intention at the beginning of the week to set up a huge wafer production facility in the USA, would also like to pocket the money. According to media reports, she is said to have warned of failure and brought South Korea into play as an alternative building site.

In the end, the US government is still fighting over money. The people's representatives are not entirely in agreement as to who is providing the funds. The Senate and House of Representatives had already signed it in February and March of this year, and the small print for the USD 52 billion bill was to follow soon. Gelsinger now hopes that August will be the day.

It's game time. Get it done before August.

Intel CEO Pat Gelsinger