(THE CENTER SQUARE) – The largest single private-sector company investment in Ohio is expected to bring more than 20,000 jobs – including 3,000 direct jobs paying an average of $135,000 annually – when it’s completed in 2025, Gov. Mike DeWine announced Friday.
Intel plans to invest $20 billion on a new computer chip facility in central Ohio that will create 3,000 full-time jobs, 7,000 construction jobs and what DeWine called tens of thousands of additional indirect and support jobs. The project is expected to add $2.8 billion to the state’s annual gross product.
“Today’s announcement is monumental news for the state of Ohio,” DeWine said. “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.”
The project, which includes two chip factories, will be built on a nearly 1,000-acre site in Licking County, just east of Columbus. Construction is expected to begin this year with production beginning at the end of 2025.
“We are excited to call Ohio home to Intel’s first new manufacturing site in 40 years,” Intel CEO Pat Gelsinger said. “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. We expect Intel Ohio will become one of the largest semiconductor manufacturing sites in the world over the next decade.”
The news was welcomed by government officials and trade organizations, which called it a generational opportunity that helps each of the state’s 88 counties.
“This project is a once-in-a-generation opportunity for the Buckeye State and its manufacturing community. All 88 counties of our state will benefit from this major investment, which serves as the nation’s leading example of reshoring – a returning to domestic manufacturing,” Ryan Augsburger, president of the Ohio Manufacturers Association, said in a statement. “Over the past two years, the chip shortage has cost manufacturers hundreds of billions of dollars in lost revenue. The trickle-down effect has impacted every American family and business and magnified the need for a resilient domestic supply chain of semiconductors. Where better to do that than right here in Ohio? By strengthening one of the most vital links of our supply chain, Intel’s decision is a critical economic win for national security and our quality of life.”
The U.S. led the world in chip production in 1990, holding 40% of the world’s production capacity. That fell to 12% in 2020. Offshore manufacturing of chips, DeWine said, has left the country vulnerable to supply chain disruptions that hurt businesses and consumers.
“This investment is a big win for Intel, for American manufacturing, and for American consumers who can look forward to lower prices as we bring home production of the semiconductors that keep our economy running,” U.S. Secretary of Commerce Gina Raimondo said. “From his first day in office, President (Joe) Biden has recognized that if we want to compete globally, we need to invest domestically. That investment begins with revitalizing our manufacturing economy, strengthening American supply chains, and bringing good-paying jobs back from overseas.”
Messages left with DeWine’s office regarding state and local incentives offered for the project were not returned.
