Intel to receive $600M for new chip manufacturing plant, $700M for ‘project-ready’ infrastructure
The Intel Corporation was soon to be awarded $600 million to incentivize the company to construct two chip facilities in the state of Ohio.
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The Ohio Department of Development announced the $600 million onshoring grant agreement with Intel Corporation has been finalized.
These funds were to help offset costs associated with the construction of its state-of-the-art semiconductor manufacturing campus in Licking County.
As part of the grant agreement, $300 million was available for the construction of each of the two chip factories set to be completed as part of the initial phase of Intel’s $20 billion investment in Ohio.
Funds were to be available for two years after construction began on each facility, which was required to be completed by December 31, 2028.
“Companies like Intel, from one coast to the next, are choosing to invest in Ohio because of our strategic location, willing workforce, and positive business climate,” Ohio Governor Mike DeWine said. “I’m proud that we were able to partner with Intel to make such a transformative investment in our state to make Ohio the new ‘Silicon Heartland.’”
The initial manufacturing facilities (known in the industry as FABs or foundries) were to be located on a 926-acre site in Licking County.
In addition to the funds being provided through the onshoring grant, Ohio also provided nearly $700 million to build out local infrastructure. The investment was necessary “due to the lack of project-ready sites in the state,” the spokesperson said.
The $2.5 billion All Ohio Future Fund the DeWine-Husted Administration proposed in the Executive Budget would enable more sites around the state to be made project ready.
“This project is important for our economic and national security because it will allow computer chips to be manufactured in America again,” Lt. Governor Jon Husted said. “Ohioans are going to be the economic winners as we bring a new industry to Ohio with a supply chain that will create tens of thousands of high-paying jobs.”
The project was set to be the the largest single private sector company investment in the state’s history, aiming to create 3,000 new full-time equivalent jobs, 7,000 jobs in construction, tens of thousands more in fields like healthcare, housing, engineering, and entertainment, and $405 million in annual payroll.
“When we say Ohio is the heart of opportunity, this is what we’re talking about,” Lydia Mihalik, director of the Department of Development, said. “The support we’re putting behind Intel today should serve as a statement to the rest of the world that we’re open for business and ready to create opportunities for any company that wants to grow and thrive like never before.”
