Intel to break-ground on $20B Ohio plants
By Andrew Welsh-huggins, The Associated Press, Columbus OhioElectronics Semiconductors Supply Chain fab semiconductor
Total investment could top $100-billion over the decade
Intel Corp. will break ground Sept. 9 on its planned $20 billion Ohio semiconductor facilities, paving the way for the company’s two factories, known as fabs, scheduled to open in 2025. The facility will employ 3,000 people with an average salary of around $135,000. Building the fabs is expected to require 7,000 construction workers.
Total investment could top $100 billion over the decade with six additional fabs, Intel CEO Patrick Gelsinger has said. It’s Ohio’s largest ever private economic development project. US president Joe Biden will be attending and plans to speak on “rebuilding American manufacturing” through recently passed laws boosting the semiconductor industry and U.S. infrastructure, the White House said.
Worldwide chip manufacturing market has declined
Expanding semiconductor manufacturing domestically took on new urgency during the pandemic and as most production has shifted overseas. The U.S. share of the worldwide chip manufacturing market has declined from 37% in 1990 to 12% today, according to the Semiconductor Industry Association, and shortages have become a potential risk.
To win the project, Ohio offered California-based Intel roughly $2 billion in incentives, including a 30-year tax break. Intel has outlined $150 million in educational funding aimed at growing the semiconductor industry regionally and nationally.