Due to concerns over the fate of a piece of legislation that would support the domestic semiconductor industry, Intel has delayer the groundbreaking on a proposed chip manufacturing plant in Ohio.

Referred to by Intel’s CEO as the beginning of a new “Silicon Heartland,” the multi-billion dollar facility’s ground-breaking is now on hold, as legislators figure out  what the path forward, if any, is for the Bipartisan Innovation Act.

The Wall Street Journal reported that Intel told lawmakers and government officials that it was delaying the groundbreaking ceremony due to frustration over uncertainty about what the future of the legislation was going to be. The legislation, ofttimes referred to as the CHIPS Act was designed to further US semiconductor manufacturing, in part for reasons of national security. It includes about $52 billion in funding to support expanding domestic semiconductor production as well as research and development.

The groundbreaking ceremony had been scheduled for July 22nd, however Intel sent notice to gov Mike DeWine and the Ohio congressional delegation it was postponing the groundbreaking, “due in part to uncertainty around,” the proposed legislation’s fate in Congress.

Intel still appears set to build the facility however. After announcing the plant in January, and its intention to invest at least $20 billion in the plant, Intel has not pushed back the facilities schedule, with construction scheduled to begin in late 2022, and chip production set to begin in 2025.

Intel has indicated that it believes that spending on the project could reach $100 billion ultimately over the next decade, however the plant’s expansion will depend partly on passage of the CHIPS Act and the billions it will contribute to the project.

Intel, through a spokesperson said, “Unfortunately, CHIPS Act funding has moved more slowly than we expected and we still don’t know when it will get done.” They then called on Congress to move the bill forward, so Intel, “can move forward at the speed and scale we have long envisioned for Ohio.” 

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