COLUMBUS, Ohio — Ohio officials are trying to secure federal funding for Intel’s multibillion-dollar manufacturing plant, but as the months pass and a new administration draws closer, tensions rise.

Tech giant Intel broke ground in the Buckeye State more than two years ago, pledging $20 billion for a semiconductor manufacturing plant that would create tens of thousands of jobs.

Semiconductors are the chips behind e-commerce, social media, cars, computers, and anything else that uses digital technology, which is pretty much everything today.

This would not have been possible without the CHIPS Act, signed by President Joe Biden in August 2022. The immediate economic impact was expected to be major. The plant will create 3,000 good-paying jobs, 7,000 construction jobs and tens of thousands of additional jobs.

But that hasn’t happened yet.

Intel told me in February that its goal to start creating chips by the end of 2025 was no longer feasible.

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“This is something that’s been going on for a while,” Gov. Mike DeWine said.

DeWine and the state have already given billions to subsidize the project, but Intel said the federal government was not holding up its end of the bargain. A deal was reached in the spring for Intel to obtain $8.5 billion in direct financing and $11 billion in loans, the company said.

“I contacted the White House today to ask them to expedite the release of the money to Intel,” DeWine told reporters before the election.

Intel still plans to stay in Ohio despite the delays, a company spokesperson said.

“We are proud to build the Silicon Heartland and are on track to make Ohio One one of the leading semiconductor manufacturing centers in the world,” the spokesperson said. “We are committed to Ohio and we will finish the job.” »

But Sen. Bill DeMora (D-Columbus), who is championing the central Ohio region as the Intel project gets underway, said the fault doesn’t lie solely with the administration.

“Intel has to do what it’s asked to do, and then I think the federal government is willing to give it the money it’s promised,” DeMora said.

The U.S. Department of Commerce requires companies to comply with their regulations in order to get money. We asked the government and Intel where they were stuck. Intel was unable to comment on “private conversations.”

It’s possible that Intel has fully complied and the negotiation process is simply taking a long time, but DeMora thinks they would have no money problems if they just complied.

“There’s probably some stubbornness on both sides,” the senator said. “We can solve this problem because we need to get Intel up and running.”

But the project faces far more challenges than just a slow rollout of money.

Before the election, U.S. House Speaker Mike Johnson (R-LA) said Republicans would “probably” try to repeal the CHIPS Act.

“I think we probably will, but we haven’t developed that part of the agenda yet,” Johnson told a reporter who asked if he would try to repeal the legislation.

The speaker stressed that it was important for national security, but it went too far.

“You will have 100 percent agreement from President Trump and every member of Congress. What we were opposed to was that there was too much to do.”

After rapid backlash from Democrats and concerns from Republicans, Johnson retracted his comment, saying he had misheard the question.

But doubt was already raised about the future of Silicon Heartland.

U.S. Sen.-elect Bernie Moreno strongly supports the Intel plan and has said a repeal is not planned, but on Wednesday he said the legislation might need some work.

“I could see it as a change from subsidies to maybe tax incentives and just better operational execution of that,” Moreno told reporters.

However, the next day, reporters asked Moreno what he wanted to change in the CHIPS Act.

“I’ll admit, I haven’t read it,” Moreno told the same group of Statehouse reporters Thursday. “And one of the things you’ll find with me is that I will never comment on a bill that I haven’t read.”

He added that at a “high level” it was too intrusive into the company’s operations.

“It tells them too much about how to run their business,” he said. “I would have preferred it to be more of a tax incentive program than a subsidy program, because the government can’t help it.”

Ultimately, the senator-elect said, Intel will “thrive” in Ohio.

Moreno has been texting with Intel CEO Pat Gelsinger, he said, and they will work together to ensure the project is successful. Intel has confirmed this.

“The idea behind the CHIPS and Science Act originated during the first Trump administration and has strong bipartisan support,” an Intel spokesperson said. “Restoring America’s leadership in semiconductor manufacturing is integral to the country’s economic competitiveness and national security. As the only U.S. company to design and manufacture cutting-edge chips, Intel has a critical role to play and we look forward to working with the Trump Administration on this shared priority.

This, combined with the company’s financial woes, has officials in DeMora and Ohio worried.

Their shares have fallen more than 50% over the past year, while the industry has grown more than 120%. After spending 25 years in the Dow Jones Industrial Average, Intel was replaced on Friday in the index by Nvidia, leader in artificial intelligence. The company also experienced massive layoffs in October, eliminating 15,000 jobs, reducing its workforce by 15%.

“I think there’s a real possibility that Intel will walk away and say ‘We’re done,’ especially if their shares continue to decline,” the senator said.

Some Ohio officials privately worry that Intel could become another “Foxconn” scandal. In 2023, based in Ohio Lordstown Motors filed for bankruptcy and sued international manufacturer Foxconn for failing to honor and follow through on its massive investment deal.

Still, DeWine is confident the project will succeed.

“It’s important for Ohio, it’s important for the future, I think, of this country,” the governor said. “Now is the time to make it happen.”

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