Intel picks Ohio for its $20B factory

COLUMBUS —Ohio Gov. Mike DeWine hosted announced the largest single private-sector investment in the state's history on Friday. Intel has chosen to invest more than $20 billion in two state-of-the-art semiconductor chip fabrication facilities in northwest Licking County, just east of Columbus, the governor said during a press conference. DeWine called it "monumental news." "Intel's new facilities will be transformative for our state, creating thousands of good-paying jobs in Ohio manufacturing strategically vital semiconductors," he said. "..."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." The factories will be Intel's first new manufacturing sites in 40 years and are expected to create 3,000 direct jobs with an average salary of $135,000. Additionally, the investment will bring in at least 7,000 construction jobs and tens of thousands of indirect support jobs for contractors, suppliers and consultants. JobsOhio, the commercial development branch of state government, estimates that 140 existing Ohio companies that already supply Intel will benefit from the new site as well. At his press conference Friday, DeWine said the state's first contact with Intel about the potential project took place May 3, 2021. By Christmas, Ohio had been chosen. DeWine thanked the Licking County commissioners specifically for their efforts to bring the major economic investment to the state. "Nothing happens in this state without county commissioners," he said. "Ohio is a local government state. Things happen locally, it comes from the grassroots, and we like it that way in Ohio." Forty states were competing for the Intel campus, which will add $2.8 billion to Ohio's annual gross state product. As of 2020, Ohio had the third-largest manufacturing GDP of any state, and is within a one-day drive of 60% of the population of the U.S. and Canada, according to JobsOhio's website. The COVID-19 pandemic has exacerbated an already-strained global supply chain of semiconductor chips, creating a shortage that has affected industries like aerospace, consumer goods, defense, medical equipment and automobiles. More than 300 downstream economic sectors and 26 million jobs have been put at risk by the chip shortage, according to the site. In 1990, 40% of all semiconductors were manufactured in the U.S. In 2020, that number was 12%. 70% of chips are currently produced in Asia, the site states. "We are excited to call Ohio home to Intel's first new manufacturing site in 40 years," said Intel CEO Pat Gelsinger during the conference. "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." It's no easy feat to build a chip manufacturing facility from the ground up — making just one chip takes three months and a series of machines worth more than $150 million. Construction on the new 926-acre Licking County site will begin in late 2022, with production online by the end of 2025, Gelsinger said. "The impact of this mega-site investment will be profound," said Intel's Senior Vice President of Manufacturing and Supply Chain Operations Keyvan Esfarjani. "Building this semiconductor mega-site is akin to building a small city, which brings forth a vibrant community of supporting services and suppliers. Ohio is an ideal location for Intel's U.S. expansion because of its access to top talent, robust existing infrastructure and long history as a manufacturing powerhouse." Though the original investment is for $20 billion and two factories, the site's full capacity could accommodate a total of eight chip factories and more than $100 billion over the next 10 years. Each facility will be constructed with Intel's "green building principles," which include goals of being 100% powered by renewable energy, using zero landfill space and having net positive water use, Esfarjani said. In addition, Intel has pledged another $100 million over the next decade towards creating partnerships with Ohio educational institutions to craft a "pipeline of talent" and bolster regional research programs. Kristina Johnson, the President of Ohio State University, was present at the press conference to speak on the topic of educational partnerships. Also present was J.P. Nauseef, the President and CEO of JobsOhio. "Ohio was built for this moment and this industry," Nauseef said. "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." "For 11 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," Nauseef continued. "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."