Intel to Invest More Than $20 Billion in Ohio Chip Factory, DeWine Says

CINCINNATI (WXIX) – Intel will invest more than $20 billion to build two computer chip factories in Ohio by 2025 as part of the state’s largest economic development deal yet and what will be the company’s most advanced semiconductor manufacturing operation in the world, Governor Mike DeWine and Lieutenant Governor Jon Husted announced Friday.

Intel has chosen 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 who will pay an average of $135,000 per year (plus benefits), said DeWine and Husted in a press release. .

There will also be 7,000 construction jobs over the course of the project, and tens of thousands of additional indirect and support jobs, including contract positions, electricians, engineers and jobs in restaurants, healthcare health, housing, entertainment and more, the statement said.

Overall, this project is expected to add $2.8 billion to Ohio’s annual gross product, according to DeWine and Husted.

“Today’s announcement is monumental news for the State of Ohio,” DeWine said in a press release.

“Intel’s new facilities will be transformative for our state, creating thousands of well-paying jobs in Ohio, manufacturing strategically vital semiconductors, often referred to as ‘chips.’ Cutting-edge manufacturing, research and development, and talent are part of Ohio’s DNA, and we’re proud that the chips – which power the future – are made in Ohio, by Ohio people. ‘Ohio.

Husted said Ohio is “establishing an entirely new industry sector that does not currently exist in our state, and with it, we are rebuilding for America a sustainable and resilient national semiconductor supply chain that is essential to our national and economic security.”

DeWine and Husted are holding a press conference Friday at 2:30 p.m. in Newark with JobsOhio, One Columbus and several local, state and federal leaders to discuss this “historic economic development announcement,” their statement said.

Two top Intel executives, CEO Pat Gelsinger and senior vice president who is also chief manufacturing officer Keyvan Esfarjani, are scheduled to host a webcast at the same local time (11:30 a.m. PT), the company’s website says. company.

Company officials “will share details of Intel’s latest investment plans in manufacturing leadership,” Intel’s website says.

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Gelsinger said, “We are thrilled to welcome Intel’s first new manufacturing site in 40 years to Ohio. Today, we take an important step toward our goal of rebalancing global chipmaking capacity and helping to boost production to meet growing demand for advanced semiconductors, fueling a new generation of innovative products. The new factories we will build in Ohio are part of our strategy to increase semiconductor R&D and global manufacturing capacity and restore US leadership in semiconductor manufacturing. We expect Intel Ohio to become one of the largest semiconductor manufacturing sites in the world over the next decade.

More than 140 existing Ohio companies across the state are already suppliers to Intel, and the project is expected to bring additional new companies 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 industrial sectors, and position Ohio at the center of American industrial innovation, the press release said.

In 1990, the United States was a world leader in chip production, dominating nearly 40% of global production capacity. In 2020, our country’s share fell to just 12% and is expected to fall to just 10% by 2030 if the United States does not act, according to DeWine’s office.

“The confluence of geopolitical tensions and pandemic disruption has made this danger to the U.S. economy clear: Decades of outsourcing chip manufacturing — a fundamental technology that makes modern life possible — to Asia have stagnated innovation. and left the United States vulnerable to supply chain disruptions that have crippled major sectors of our national and state economy, and harmed businesses and consumers,” the statement read.

Increasing chip production in the United States is critical to national security and industrial competitiveness, the statement continued.

Intel’s technology, built in America, is essential to key sectors in Ohio, including automotive, advanced mobility, aerospace and aviation, consumer goods, data centers, defense, healthcare and technology – these industrial segments are crucial to the economies of states and regions. And demand is growing – global computer chip manufacturing capacity is expected to grow 56% from the current install base by 2030.

“Ohio was built for this moment and this industry. Intel plans to build its future in Ohio because generations of visionary Ohioans have built the ideal foundation – a great place to live and work combined with a spirit of dedication to excellence and pride in hard work,” said JobsOhio President and CEO JP Nauseef.

“For eleven years, JobsOhio has been proud to work with the state administration, our channel partners, and statewide stakeholders to provide Ohio with a competitive advantage by attracting and growing some of the most successful businesses. most important in the world. We want the world to know that Ohio’s future is being built with Intel and open to business from other companies who want to join us.

Public and private leaders in Ohio support passage of the CHIPS for America Act, already approved by the U.S. Senate, to make Ohio and the country globally competitive and accelerate growth, according to DeWine and Husted of the Ohio project.

“This is a powerful development for Ohio’s economy, jobs and national security,” Ohio Senate Speaker Matt Huffman said in the statement prepared Friday. “Now more than ever, critical components need to be made here instead of relying on overseas manufacturing.”

Ohio House Speaker Bob Cupp added, “This is a historic day for Ohio. This project will establish Ohio as a national leader in national semiconductor manufacturing and put the people of Ohio at the forefront of manufacturing integrated products in the United States that protect our national security. It is a project that will have a profound economic impact not only in Licking County but throughout Ohio for decades to come.

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