What You Need To Know
- Ohio beat out several other states to secure Intel’s more than $20 billion investment to build two chip manufacturing facilities in Licking County
- This marks the largest single private-sector investment in the state’s history
- Ohio leaders said the project will generate more than 20,000 jobs
- Construction is set to begin later this year and the initial phase is set to be complete by 2025
This marks the largest single private-sector investment in the state’s history. The deal was announced on Jan. 21.
“Ohio has been presented with a historic opportunity to take the lead in re-establishing America’s dominance,” said Lydia Mihalik, director of the Ohio Department of Development, in a virtual press conference Friday.
Mihalik outlined the details behind the Intel deal she said required a “team Ohio” approach.
“We’ve got to make more products here in America and we want to make them here in Ohio,” said Mihalik.
Ohio beat out several other states to secure Intel’s more than $20 billion investment to build two chip manufacturing facilities in Licking County.
Ohio leaders said the project will generate more than 20,000 jobs, 3,000 of which are Intel jobs with an average salary of $135,000. Seven-thousand are construction jobs to build the factories, or “fabs,” and over 10,000 additional indirect and support jobs are expected, as well.
“This deal will establish Ohio as the world center for modern manufacturing and it’s going to create an infrastructure for semiconductor manufacturing that other companies can leverage,” said Mihalik.
Ohio offered $1.3 billion in direct cash incentives to Intel.
That breaks down to a $600 million manufacturing operations grant for the company and $691 million to be invested in local infrastructure.
Mihalik said that means a 16-to-1 return.
“For every 6 cents the state invests in these direct cash incentives, Intel invests at least a dollar,” she explained. “This incentive is performance-based. So, if Intel fails to deliver on their commitments, which we’re very confident that they won’t, they will not be eligible for the grant and so we would have a discussion then, of course, of disbursed funds that would be clawed back.”
JobsOhio also offered incentives to bring Intel to our state. JobsOhio plans to provide up to $150 million in combined economic development and workforce grants.
Intel will also benefit from Ohio’s expanded Job Creation Tax Credit. The 30-year credit has a potential value of $650 million.
“When you look at what we’re giving Intel and compare it to what we’re getting in return, some may wonder if it’s worth it and the answer is yes,” said Mihalik.
Mihalik said an additional $2.8 billion is expected to be added to Ohio’s annual gross state product thanks to this project.
“Intel’s technology, which is built in America, is essential to key Ohio sectors including the automotive, advanced mobility, aerospace and aviation, consumer goods, our data centers, defense, health care and technology,” she said.
Construction should begin later this year and the mega-site will be built to support eight chip fabs. This is Intel’s first new manufacturing site in 40 years and over the next decade, the site investment could grow up to $100 billion.
“It’s a win-win for Ohio, for Intel and for America,” said Mihalik.
The initial phase is expected to be complete by 2025 and now the legislature will be involved in conversations to move forward on the state’s incentives.