Biden To Speak At Groundbreaking Of Intel’s Ohio Microchip Factory

President Joe Biden will address an event marking the groundbreaking of Intel’s new semiconductor manufacturing facility in Licking County, Ohio, Friday.

According to White House schedule, the President will deliver remarks on rebuilding American manufacturing through the CHIPS and Science Act at 12:15 PM ET.

Intel committed the construction of a $20 billion facility ahead of the passage of the bipartisan CHIPS and Science Act.

The factory will be built by union labor, creating more than 7,000 construction jobs and 3,000 full-time, producing, leading-edge CHIPS jobs as well, White House said.

The groundbreaking comes within a month of Biden signing the sweeping Chips and Science Act of 2022 into law.

The Act includes provisions that will help lower costs for American consumers by alleviating the shortage of chips that has driven up prices across the nation; Create hundreds of thousands of good-paying jobs building advanced manufacturing facilities in the United States; End American dependence on foreign manufacturers, especially China; bolster the United States’ scientific research and technological leadership, and strengthen economic and national security.

One of the objectives of this key legislation is to counter the growing influence of China in this critical manufacturing sector, especially in view of recent tension between China and Taiwan.

The bill provides a 25 percent tax credit for U.S. facilities that produce semiconductors or chip making equipment. The funding includes $39 billion for grants available to semiconductor manufacturers as well as equipment and materials suppliers.

Major companies have announced nearly $50 billion worth of additional investments in American semiconductor manufacturing.

Micron announced it will invest $15 billion in a new memory chip manufacturing facility in Boise, Idaho, creating 17,000 jobs.

GlobalFoundries and Qualcomm are partnering to invest $4.2 billion to manufacture chips in an upstate New York facility.

Major global companies like Toyota and Honda have expressed interest to make significant investments in the United States.

Despite being the inventor of the semiconductor, the United States has been depending heavily on foreign manufacturers in the production of several essential goods – like the semiconductors that power everything from military equipment to cars, to microwaves.

The United States currently produces only 10 percent of the world’s supply, and none of the most advanced chips. Instead, it relies on East Asia for 75 percent of global production.

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