Intel to invest more than $20 billion in Ohio chip factory, says DeWine

CINCINNATI (WXIX) — Intel will invest more than $20 billion to build two computer chip plants in Ohio by 2025 in its largest economic development deal to date and what will be the world’s most advanced semiconductor manufacturing facility, Gov. Mike DeWine and Lt. gov. Jon Husted announced Friday.

Intel chose a 926-acre site in Licking County near Columbus for its factories that will generate more than 20,000 jobs, including 3,000 directly with Intel that will pay an average of $135,000 a year (plus benefits), DeWine and Husted said in a statement. 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, housing, entertainment and more, the release said.

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 landmark news for the state of Ohio, DeWine said in a press release.

Intel’s new facilities will transform our state and create thousands of high-paying jobs in Ohio manufacturing strategically essential semiconductors, often called chips. Advanced manufacturing, research and development and talent are part of Ohio’s DNA, and we’re proud that chips that 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 together we are building a sustainable, resilient domestic semiconductor supply chain that is critical to our national and economic security.

DeWine and Husted will hold a press conference in Newark Friday at 2:30 p.m. with JobsOhio, One Columbus and several local, state and federal leaders to discuss this historic announcement of economic development, their release states.

Two top Intel leaders, CEO Pat Gelsinger and the senior vice president who is also the general manager for production, Keyvan Esfarjani, will host a webcast at the same local time (11:30 a.m. PT), according to the company’s website. business.

Company officials will share details about Intel’s latest plans for manufacturing leadership investments, according to Intel’s website.

FOX19 NOW will stream the announcements on our website and Facebook page.

Gelsinger said: We are delighted to call Ohio home to Intel’s first new manufacturing site in 40 years. Today, we are taking an important step toward our goal of rebalancing global chip manufacturing capacity and boosting production to meet rising demand for advanced semiconductors and power a new generation of innovative products. The well-built new plants in Ohio are part of our strategy to increase R&D and global semiconductor manufacturing capabilities and restore US semi-manufacturing leadership. 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 in the state are already Intel suppliers, and the project is expected to bring additional new companies to Ohio to support the supply chain, the DeWines office said.

The success of these companies will create new jobs, fuel growth in other key industry sectors in Ohio and position Ohio at the center of America’s industrial innovation, the press release said.

In 1990, the United States was a world leader in chip production, dominated nearly 40% of the world’s manufacturing capacity. In 2020, our countries’ share fell to just 12% and is expected to drop to just 10% by 2030 if the US does nothing, according to the DeWines office.

The confluence of geopolitical tensions and pandemic disruptions has highlighted this danger to the US economy: decades of offshoring chip production, a fundamental technology enabling modern life in Asia, has stalled innovation and left the US vulnerable. for supply chain disruptions that harmed major sectors of our national and state economies, and harmed businesses and consumers, the release states.

Boosting chip production in the US is critical to national security and industrial competitiveness, the release continues.

Intel’s technology, built in America, is essential to key Ohio industries, including automotive, advanced mobility, aerospace and aerospace, consumer goods, data centers, defense, healthcare and technology. These industry segments are critical to state and regional economies. And the demand is increasing The global production capacity of computer chips is expected to grow by 56% by 2030 from its current installation base.

Ohio was built for this moment and this industry. Intel wants to build its future in Ohio because generations of visionary Ohioans have laid the ideal foundation for 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 proudly worked with the state administration, our network partners and stakeholders across the state to give Ohio a competitive advantage in attracting and growing some of the world’s most important companies. We want the world to know that Ohio’s future is built with Intel and open to business from other companies that want to stand alongside them.

Public and private leaders across Ohio support the passing of the CHIPS for America Act, already passed by the U.S. Senate, to make Ohio and the nation globally competitive and accelerate growth in the Ohio project, DeWine and Husted said .

This is a powerful development for Ohios economy, jobs, and national security, Ohio Senate President Matt Huffman said in Fridays prepared statement. Now more than ever, critical components must be made right here at home rather than 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 in domestic semiconductor manufacturing and put Ohio residents at the forefront of making US-built products that safeguard our national security. This is a project that will have a profound economic impact for decades to come, not just in Licking County, but all of Ohio.

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