Remember all the hype around the Intel project in Ohio? It’s been a hot minute since we checked in and there’s been some juicy developments. 👀🏭
Turns out things might not be going so smoothly. In other words, it’s not all that and a bag of (semiconductor) chips. 😛
Here’s Five Fast Facts on what’s going on with Intel:
- ⚙️ Chips and Dip - Back in 2022, the CHIPS and Science Act passed in Congress. As part of the deal, the U.S. Department of Commerce agreed to give Intel up to $8.5 billion in funds and eligibility for $11 billion in loans. But here’s the twist: in order to get the package, Intel had to meet specific requirements and things haven’t exactly gone as planned.
- 🫣 Hide and Seek - Intel used the Ohio plant as a bargaining chip (pun intended). When the CHIPS Act got held up in Congress, Intel delayed the groundbreaking of its Ohio One project. Sources say the government is hesitant to release the CHIPS funding and Intel hasn’t met the outlined requirements. Word on the street is that Intel won’t share some of the metrics the government requested as part of the deal.
- 📉 Cash Crunch - Right now, Intel could really use that CHIPS cash. The company announced layoffs of 15% of its global workforce. They also announced suspension of its stock dividends program after reporting quarterly losses of $1.6 billion. Intel stock fell from $50 a share in January to under $19 in August.
- 👷 Keep It Movin’ - With all this going on, Intel is still going through with construction on the Ohio plant. Although there are project delays, there’s still daily activity at the site. However, Intel is delaying a $32 billion Germany plant and stopped plans for a $25 billion semiconductor fabrication plant in Israel.
- 💪 American-Made - The push to get the Ohio plant up and running was backed by the Biden administration over the last two years. Chip manufacturing mostly happens overseas and more U.S. production would lessen our dependence on imports.
🔥Bottom line: Big projects like this one are never cut and dry. There’s a lot of moving parts and they almost never go according to the original plan. We’ll keep our eyes on this one and report back!
Do you think the Intel project will be good for Ohio?
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