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Ohio leaders say the future of U.S. computer chip manufacturing depends on Congress

By: Andy Chow | Statehouse News Bureau
Posted on: Friday, July 22, 2022

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COLUMBUS, Ohio (Statehouse News Bureau) — A new spending bill in Congress could send a message to the world that the U.S. is ready to compete for computer chip manufacturing jobs, according to some of Ohio’s top leaders.

Keyvan Esfarjani, senior vice president and general manager of Manufacturing, Supply Chain and Operations at Intel Corporation, speaks to the media at ean event in Newark, Ohio, announcing a massive computer chip plant that is to be built in the area northeast of Columbus. He is surrounded by state officials. [Daniel Konik | Statehouse News Bureau]

Ohio’s U.S. Senators have supported a new $52 billion measure to allow grants and tax credits for semiconductor manufacturing in the country.

The money would boost development for companies like Intel, which is already constructing a $20 billion plant in central Ohio.

But there has been a delay in Congress to pass this legislation in the past, leading to Intel canceling its plans for a ceremonial groundbreaking. Although, Intel is still continuing actual construction.

Brown said that project will happen no matter what, but the creation of future projects depends on Congress’ ability to continue supporting the industry.

“They will invest even more in Ohio than they plan to. But we’ve got to keep our eye on the ball. And that means passing this bill and then continuing to work with companies and suppliers to get them to Ohio,” said Brown.

U.S. Senator Rob Portman, a Republican, also supported the legislation. He said on the Senate floor that there is an “urgency to get this done because it’s critical to the decisions that employers are making right now to create and bring semiconductor manufacturing, factories, and jobs to America or to some other country.”

The U.S. Senate passed a $250 billion plan that included $52 billion for chip manufacturing last year. The U.S. House then passed its own spending plan with chip manufacturing funds included in a $400 billion proposal.

Portman said the bill from U.S. House Democrats included “unrelated items that no Republican could support.” Meanwhile, Brown has accused Republican Senate Minority Leader Mitch McConnell of playing politics with the issue.

Lt. Gov. Jon Husted, a Republican, played a role behind-the-scenes to bring Intel’s project to Ohio.

As Husted explained, Intel is carrying out the first of what could be five phases in chip production in Ohio. He said the possibility of further production in Ohio and the ability for the U.S. to have locally-sourced computer chips is important for national and economic security.

“Some things are bigger than partisanship. This is about America’s economic and national security. That is no joke. We can’t depend on the most important manufactured product being made in countries that might not be friends of America,” said Husted.

Husted said he is hopeful that the bill to support chip manufacturing will pass Congress and be signed by President Joe Biden by August.