Ohio’s governor said there would be a ‘huge economic spinoff’ from Intel’s investment in the state.
Intel CEO Pat Gelsinger scored an invite to President Biden’s first State of the Union address and maybe for good reason.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| INTEL | n.a. | n.a. | n.a. | n.a. |
Gelsinger, who was listed as a guest of First Lady Jill Biden, along with Facebook Whistleblower Francis Haugen, recently earmarked $20 billion to build a semiconductor factory at a “mega site” in Columbus, Ohio, with the promise of 10,000 new jobs.
And Biden is hoping he’ll fork out more cash.
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WASHINGTON, DC – MARCH 01: Guests of First Lady Jill Biden, including (front row L-R) Intel CEO Pat Gelsinger (Photo by Win McNamee/Getty Images / Getty Images)
“Intel’s CEO, Pat Gelsinger, who is here tonight, told me they are ready to increase their investment from $20 billion to $100 billion,” Biden said Tuesday evening. He also used the chip giant’s potential future spending as a carrot to highlight his own spending bills. “That’s why it is so important to pass the Bipartisan Innovation Act sitting in Congress” he added. The bill, formerly referred to as the ‘Chips Act’ or the ‘U.S. Innovation and Competition Act’ calls for $52 billion and remains in limbo on Capitol Hill.
President Joe Biden delivers his State of the Union address to a joint session of Congress at the Capitol, Tuesday, March 1, 2022, in Washington. (Saul Loeb, Pool via AP) (Saul Loeb, Pool via AP / AP Newsroom)
Intel, which is also rolling out about $50 billion to expand factories at the Ocotillo campus in Chandler, Arizona, is among the American businesses trying to reduce their dependence on foreign chip making dominated by China and other regions of Asia.
Chip manufacturing has been exasperated by the supply chain crisis as the world rebounds from COVID-19, causing delays in everything from cars to phones to appliances.
Construction site for two new Intel factories in Chandler, AZ (Intel)
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In January, the Commerce Department disclosed that chip inventory plummeted to less than five days in 2021, from 40 days in 2019, elevating the push for more government spending.
“The semiconductor supply chain remains fragile, and it is essential that Congress pass chips funding as soon as possible,” said Secretary of Commerce Gina M. Raimondo said at the time.
The percentage of U.S. chip manufacturing has plummeted to 12% vs. 37% in 1990, according to the Semiconductor Industry Association.
Intel shares are down 9% this year, slightly less than the 9.7% drop in the S&P 500.
