Staff Reports
The U.S. Department of Commerce and Intel finally delivered some good news for the beleaguered American semiconductor industry: nearly $8 billion in CHIPS Act funding is headed toward the company’s expansion plans across various states. This $7.86 billion windfall, no doubt a relief after a marathon of lobbying from business groups, is set to kickstart commercial semiconductor manufacturing in locations like Ohio, Arizona, New Mexico, and Oregon. It’s about time some cash got committed to domestic production instead of just fancy tech conventions and empty promises.
Intel, that Silicon Valley giant which had a rough patch seemingly engaging in more tech talk than tech action, is promising to create more than 10,000 direct jobs, 20,000 construction jobs, and a whopping 50,000 indirect jobs through its expansion plans. They’re claiming a commitment to U.S. soil that hasn’t been seen since they actually started making chips here. If only they had the same enthusiasm for American manufacturing back in the day rather than shipping jobs overseas.
Intel, feds reach deal on $8B in CHIPS moneyhttps://t.co/EihPY3uqry
— The Center Square (@thecentersquare) November 26, 2024
In a bid to appear socially responsible, Intel has earmarked a portion of the funds to train a new generation of semiconductor workers, allocate money for child care near their facilities, and support women in construction. While aiding education and family support is commendable, one has to wonder if this is just a public relations ploy in the face of ongoing criticism regarding jobs going unfilled due to a lack of skilled labor. There’s something notably ironic about Silicon Valley execs promising support for working-class folks when they’ve impacted their job market in the first place.
In Ohio, Governor Mike DeWine rolled out the red carpet, celebrating this announcement like it was the final score on game day. His state broke ground on what’s touted as Intel’s $20 billion chip manufacturing plant, and DeWine is all smiles, promising thousands of new jobs for Ohioans. However, behind the cheerleading, critics can’t help but ponder how many jobs will really materialize given past corporate assurances that fell flat. And what’s with the sudden urgency to build schools and infrastructure? Once upon a time, chips weren’t on the radar of economic development speeches but now seem to be the answer to every problem—maybe the Golden Age of Semiconductor Manufacturing has arrived, or perhaps it’s just the latest glittering trend on the government’s agenda.
It’s worth mentioning that while those in the Republican leadership have been lauding the CHIPS Act, there are rumblings in Congress about possibly pulling the rug out from under it. The recent bravado from House Speaker Mike Johnson hints at a reassessment of the entire plan that could leave businesses like Intel in a state of uncertainty. Meanwhile, nearly 20 business groups from several states were practically banging on the Biden administration’s door, demanding the release of these funds immediately. It’s amusing how quickly those who once cheered can turn into wolves when the bills start rolling in unchecked.
Signed into law under the current administration in August 2022, the CHIPS Act is supposed to play an instrumental role in securing America’s position in the semiconductor game. It passed with bipartisan support, but as any conservative knows, that doesn’t mean it’s without its pitfalls. With a hefty price tag on the line and the specter of political maneuvering looming overhead, the success of all this funding remains to be seen. Whether this endeavor turns out to be a true revival of American innovation or simply more red tape and corporate hand-holding is anyone’s guess.
