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    • Bernie Moreno and others think Intel will receive federal CHIPS money
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    Bernie Moreno and others think Intel will receive federal CHIPS money

    Umito Posted on

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    Republican presidential candidate Donald Trump was not a fan of federal bipartisanship. CHIPS Act this is intended to provide critical federal funds needed to fuel Ohio’s largest economic development project.

    “This chip deal is really bad,” Trump told podcaster Joe Rogan before Election Day. “We’ve invested billions of dollars for rich companies to come and borrow money and start microchip companies here. And they won’t give us the good companies anyway.”

    Now that he’s been elected president, would he and a new Congress think differently about the money Intel says it needs to fund its construction spree across the United States, including its 28 billion dollars in Licking County?

    Ohio officials don’t believe it.

    Moreno does not see the repeal of the CHIPS law

    Ohio’s new senator, Bernie Moreno, said he does not expect the legislation to be repealed next year, although changes could come as Congress and Trump determine what the best way to motivate semiconductor companies to build factories in the United States.

    “We want this to happen here. What we can’t do is move from one policy to another, from one administration to another, because it creates incredible uncertainty for businesses,” said Moreno, a Republican who defeated the incumbent. Democrat Sherrod Brown in this week’s election. “I can tell you, as a business owner, if I’m promised something from the federal government and all of a sudden there’s an election and something completely different happens, you don’t “You’re not ready to invest several billion dollars next time.”

    Like the others RepublicansMoreno said the Biden administration botched the rollout of the program and that it slowed down the $28 billion project.

    In March, the government received $8.5 billion in grants and $11 billion in low-cost loans to Intel, but no money has yet been released as Intel and the Commerce Department continue to iron out the final details.

    The legislation, signed into law in 2022, provides $52.7 billion in aid to semiconductor companies as well as tax benefits aimed at restoring production of tiny, critical devices in the United States, which the government and industry say business leaders, constitutes a problem of national security and economic competitiveness.

    Intel also secured another federal grant worth up to $3 billion to produce chips for the military.

    “We certainly don’t want to abandon this project in central Ohio,” Moreno said. “In fact, we need to look for ways to expand it beyond its original scope.”

    Intel, for its part, declared itself favorable to the arrival of a Trump administration.

    “The idea behind the CHIPS and Science Act began during the first Trump administration and has strong bipartisan support,” the company said. “Restoring U.S. leadership in semiconductor manufacturing is integral to the nation’s economic competitiveness and national security.

    “As the only American company to design and manufacture cutting-edge chips, Intel has a crucial role to play, and we look forward to working with the Trump administration on this shared priority.”

    Ohio Chamber CEO says government needs to start handing out CHIPS money

    Ohio Chamber CEO Steve Stivers said Thursday that, based on his conversations with the Commerce Department, he believes the money could be released before Thanksgiving, but certainly before Christmas.

    “This is an incredible bill,” said Stivers, a former Republican congressman. “These are complicated legal negotiations and contracts. I recognize that, but it’s been two and a half years. We want to make sure the money is flowing.

    Trump’s comments could prompt the Biden administration to close as many deals as possible with semiconductor companies before Trump takes office, said Chris Mills Rodrigo, who wrote a report for the Institute of Policy Studies on how the CHIPS Act could help workers get jobs. the industry.

    “His recent comments ridiculing the legislation should provide impetus for the Biden-Harris administration to finalize many of the contracts pending during the lame duck period,” he said. “These contracts will likely be difficult for the next administration to break unless the companies agree to do so.”

    As with other industries, Trump told Rogan that tough tariffs on imported semiconductors — not federal subsidies — were the way to restore U.S. semiconductor production.

    Trump has promised to impose widespread tariffs upon taking office to force companies to produce more in the United States.

    “When I see us paying a lot of money for people to build chips, that’s not how it is,” he told Rogan. “There was no need to pay 10 cents. You could have done it with a series of tariffs.

    “In other words, Joe, you’re putting big tariffs on the chips that come in. I’m saying you don’t have to pay those tariffs. All you have to do is build your factory in the UNITED STATES.”

    Reporter Haley BeMiller contributed to this report.

    [email protected]

    @BizMarkWilliams

    Umito
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