Intel to invest more than $20 billion in Ohio chip-making facility, DeWine says
CINCINNATI (WXIX) - Intel will invest more than $20 billion to build two computer chip plants in Ohio by 2025 in the state’s largest economic development deal to date and what will be the company’s most advanced semiconductor manufacturing operation in the world, Gov. Mike DeWine and Lt. Gov. Jon Husted announced Friday.
Intel chose a 926-acre site in Licking County near Columbus for the factories that will generate more than 20,000 jobs, including 3,000 directly with Intel that will pay an average of $135,000 per year (plus benefits), DeWine and Husted said in a news release.
There also will be 7,000 construction jobs over the course of the project, and tens of thousands of additional indirect and support jobs including contracted positions, electricians, engineers, and jobs in restaurants, healthcare, housing, entertainment and more, the release states.
Overall, this project is expected to add $2.8 billion to Ohio’s annual gross state product, according to DeWine and Husted.
“Today’s announcement is monumental news for the state of Ohio,” DeWine said in a news release.
“Intel’s new facilities will be transformative for our state, creating thousands of good-paying jobs in Ohio manufacturing strategically vital semiconductors, often called ‘chips.’ Advanced manufacturing, research and development, and talent are part of Ohio’s DNA, and we are proud that chips — which power the future — will be made in Ohio, by Ohioans.”
Husted said Ohio is “establishing an entirely new industry sector that currently does not exist in our state, and along with it, we are rebuilding for America a sustainable, resilient domestic supply chain of semiconductors, which is critical to our national and economic security.”
DeWine and Husted are holding a 2:30 p.m. news conference Friday in Newark with JobsOhio, One Columbus, and several local, state, and federal leaders to discuss this “historic economic development announcement,” their release states.
Two top Intel leaders, CEO Pat Gelsinger and the senior vice president who also is the general manager for manufacturing, Keyvan Esfarjani, are scheduled to hold a webcast at the same local time (11:30 a.m. PT), the company’s website shows.
Company officials “will share details of Intel’s latest plans for investment in manufacturing leadership,” Intel’s website states.
Gelsinger said: “We are excited to call Ohio home to Intel’s first new manufacturing site in 40 years. Today, we take an important step toward our goal to rebalance global chipmaking capacity and help boost production to meet the surging demand for advanced semiconductors, powering a new generation of innovative products. The new factories we’ll build in Ohio are part of our strategy to increase semiconductor R&D and global manufacturing capacity and restore U.S. semi manufacturing leadership. We expect Intel Ohio will become one of the largest semiconductor manufacturing sites in the world over the next decade.”
More than 140 existing Ohio businesses across the state are already Intel suppliers, and the project is expected to bring additional new businesses to Ohio to support the supply chain, according to DeWine’s office.
The success of these companies will create new jobs, fuel growth in other key Ohio industry sectors, and position Ohio at the center of America’s industrial innovation, the news release reads.
In 1990, the United States was a world leader in chip production, dominating nearly 40% of the world’s production capacity. In 2020, our nation’s share fell to only 12% and is projected to slide to just 10% by 2030 if the U.S. doesn’t act, according to DeWine’s office.
“The confluence of geopolitical tensions and pandemic disruptions starkly exposed this danger to the U.S. economy: decades of offshoring the manufacturing of chips — a foundational technology that makes modern life possible — to Asia has stagnated innovation and left the U.S. vulnerable to supply chain disruptions that have crippled major sectors of our national and state economy, and harmed businesses and consumers,” the release states.
Boosting chip production in the U.S. is critical to national security and industrial competitiveness, the release goes on.
Intel’s technology, built in America, is essential to key Ohio sectors, including automotive, advanced mobility, aerospace and aviation, consumer goods, data centers, defense, healthcare, and technology — these industry segments are crucial to state and regional economies. And demand is increasing — global computer chip manufacturing capacity is expected to grow by 56% over the current install base by 2030.
“Ohio was built for this moment and this industry. Intel envisions building its future in Ohio because generations of visionary Ohioans built the ideal foundation — a great place to live and work combined with a spirit of dedication to excellence and pride in hard work,” JobsOhio president and CEO J.P. Nauseef said.
“For eleven years, JobsOhio has been proud to work with the state administration, our network partners, and stakeholders across the state to provide Ohio a competitive advantage in attracting and growing some of the world’s most important businesses. We want the world to know that Ohio’s Future is Built with Intel and is open to business from other companies that want to come alongside.”
Public and private leaders across Ohio support the passage of the CHIPS for America Act, already approved by the U.S. Senate, to make Ohio and the nation globally competitive and accelerate growth in the Ohio project, according to DeWine and Husted.
“This is a powerful development for Ohio’s economy, jobs, and national security,” Ohio Senate President Matt Huffman said in Friday’s prepared statement. “Now more than ever, critical components need to be made here at home instead of relying on overseas manufacturing.”
Ohio House Speaker Bob Cupp added, “This is a historic day for Ohio. This project will make Ohio a national leader for domestic semiconductor manufacturing and puts Ohioans at the forefront of making built-in-the-USA products that are safeguarding our national security. This is a project that will have a profound economic impact not only in Licking County but throughout Ohio for decades to come.”
Ohio’s six major business organizations teamed up Friday to issue a statement about Intel’s new venture here: Ohio Business Roundtable, Ohio Chamber of Commerce, NFIB Ohio, Ohio Manufacturers’ Association, Ohio Farm Bureau and the Ohio Council of Retail Merchants.
“Today’s announcement by Intel that it will build a new computer-chip factory in central Ohio is a monumental win for our state and our country. The COVID-19 pandemic and its supply-chain disruptions, together with aggressive foreign trade practices, showed many organizations the importance of moving manufacturing capacity back to the United States from overseas; perhaps none more important than the semiconductor industry. Domestic chip manufacturing is essential for our national security, and we are pleased Ohio is leading the way.
“This announcement would not have been possible without the steadfast leadership of the DeWine-Husted Administration, as well as our partners at JobsOhio who have worked tirelessly to put Ohio in a position to land this “megaproject.” The Intel investment – which represents the largest economic development project in state history – is only the tip of the iceberg for new economic development in Ohio. This project will bring thousands of high paying jobs to central Ohio and benefit Ohio based suppliers and customers, many of which will be small businesses.”
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