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Ohio Lured Intel's Chip Plant with a $2 Billion Incentive Package

Ohio promised Intel roughly $2 billion in tax breaks and incentives to attract its $20 billion chip-making factory to the state, according to the Associated Press. The state's development director tells them it may be the biggest economic development deal in history. Intel's hoping it creates a powerful new technology hub in the Midwest, while also eventually addressing an ongoing chip shortage, according to the article. Unfortunately, the factory's production isn't expected to come online until 2025, though "The complex could grow much larger and more quickly, Intel executives said, if Congress approves a $52 billion bill that would invest in the chip sector and help ensure more production in the U.S." Intel CEO Patrick Gelsinger said the total Ohio investment could top $100 billion over the decade, with six additional factories, making it one of the world's biggest chipmaking sites.... Ohio's offer includes $600 million to help Intel offset the cost of building the factories, which is more expensive than it would be in Asia, said Lydia Mihalik, the state's development director. The state also will pay nearly $700 million for roadwork and water infrastructure upgrades, including a system that will allow the plant to reuse wastewater. The state Legislature this summer approved a 30-year tax break that will allow Intel to save $650 million. The state's share will be money well spent because the Intel facility will not only create jobs, but also make Ohio more attractive to industries such as auto, aviation and defense that rely on chips, Mihalik said. "These investments will not only ensure that this project is successful here, but will also be supporting the region by increasing local infrastructure to support future growth," Mihalik said. The article also cites the Semiconductor Industry Association's estimate that America's share of the world's chip manufacturing has declined from 37% in 1990 to 12% today.

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Intel Fails To Get Spectre, Meltdown Chip Flaw Class-action Suit Tossed Out

"Intel will have to defend itself against claims that the semiconductor goliath knew its microprocessors were defective and failed to tell customers," reports the Register: On Wednesday, Judge Michael Simon, of the US District Court of Oregon, partially denied the tech giant's motion to dismiss a class-action lawsuit arising from the 2018 public disclosure of Meltdown and Spectre, the family of data-leaking chip microarchitecture design blunders.... To defend against Meltdown and Spectre, Intel and other affected vendors have had to add software and hardware mitigations that for some workloads make patched processors mildly to significantly slower. The disclosure of related flaws has continued since that time, as researchers develop variations on the initial attacks and find other parts of chips that similarly expose privileged data. It is a problem that still is not entirely solved... [L]awsuits have been consolidated into a multi-district proceeding known as "Intel Corp. CPU Marketing, Sales Practices and Products Liability Litigation" (3:18-md-02828-SI). And since 2018, Intel has been trying to get them to go away. Twice before the judge had dismissed the plaintiffs' complaint while allowing the plaintiffs to amend and refile their allegations. This third time, the judge only partially granted Intel's motion to toss the case. Judge Simon dismissed claims based on purchases up through August 2017 because Intel was unaware of the microarchitecture vulnerabilities up to that point. But he allowed seven claims, from September 2017 onward, to proceed, finding the plaintiffs' contention that Intel delayed disclosure of the flaws to maximize holiday season sales plausible enough to allow the case to move forward. "Based on plaintiffs' allegations, it is not clear that Intel had a countervailing business interest other than profit for delaying disclosure for as long as it did (through the holiday season), for downplaying the negative effects of the mitigation, for suppressing the effects of the mitigation, and for continuing to embargo further security exploits that affect only Intel processors," the judge wrote in his order. [PDF]

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