What is the ‘CHIPS Act’ and how could it impact Ohio?
Intel already announced its plans to build a new plant in central Ohio, and with the ‘CHIPS Act’ now law, the positive economic news doesn’t stop there.
TOLEDO, Ohio — The United States was once a leader in the production of semiconductor chips, but has since lost ground to other nations, such as China, a robust competitor. That’s why on Tuesday, President Joe Biden signed into law the ‘CHIPS and Science Act.’ So, what will it do?
“Create good jobs, empower workers, grow the economy. Not just for the wealthy, but grow for everyone. To change the course of human health and disease, to tackle [the] climate crisis with innovation and jobs, to lead the world — and this is not hyperbole — lead the world in future industries, and protect our national security,” said President Joe Biden, during today’s signing ceremony.
All of those things could be in the cards, as the law provides $52.7 billion for American semiconductor development. The White House says that includes $39 billion in manufacturing incentives, which could push manufacturers to do more business in the U.S. The law also provides:
- $2 billion for “legacy chips”, which are used in automobiles and defense systems
- $13.2 billion in research and workforce development
- $500 million for the security of communications technology, as well as bolstering semiconductor supply chain activities
Those are just a few of the many specifications of the law.
So, you’ve heard how this law will impact the nation overall. But how could Ohio itself benefit?
Besides, Intel already announced it will be opening up a semiconductor plant in Licking County, just northeast of Columbus. It’s a plant that’ll bring 20,000 jobs to the state, paying an average of $135,000 per year — plus benefits.
In a press release this morning, Ohio House Democrats said that with the ‘CHIPS Act’ now law, Intel’s initial $20 billion investment could grow to $100 billion. They add that their belief now is that more manufacturing jobs lie in Ohio’s future.