Ohio has finalized a $600 million grant agreement with Intel, a leading semiconductor company, to support the construction of two factories in New Albany, Licking County. This grant is part of a larger $2 billion incentive package offered by the state to facilitate Intel’s $20 billion project, which is considered Ohio’s most significant economic development endeavor
Under the terms of the agreement, $300 million will be allocated to each factory’s construction. The funds will be accessible for two years after the commencement of construction and must be completed by December 31, 2028
The objective of the grant is to encourage the reshoring of semiconductor chip production to the United States, supporting various industries such as mobile devices, automobiles, and military equipment. Although the costs of establishing plants in the U.S. are estimated to be 20% to 30% higher than in Asia, Ohio aims to attract investments by offering incentives and capitalizing on a strategic location, a skilled workforce, and a favorable business environment.
“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 Gov. Mike DeWine said in a statement.
To ensure accountability and adherence to the agreement, Intel is required to provide regular project status reports to the state. Moreover, the state holds the right to recover the grant if Intel fails to fulfill its commitment to building the factories and investing a minimum of $20 billion in the project. Additionally, Intel must employ at least 3,000 workers with an annual payroll of $405 million
Construction on the site has been ongoing for over a year, and Intel anticipates completing the factories by 2025. The company expressed gratitude for its partnerships with the Ohio government, the City of New Albany, Licking County, and the local community, emphasizing its commitment to expanding its advanced chipmaking capabilities and manufacturing footprint in Ohio.
“Intel is grateful for our partnerships with the Ohio government, Licking County, City of New Albany, and the local community as we continue to build an Intel future in the Silicon Heartland,” the company said. “Intel is proud to be making progress in Ohio to expand our U.S. leading-edge manufacturing footprint and advanced chipmaking capabilities, which will employ thousands of Ohioans and meet the demands of our evolving economy.”
This ambitious project by Intel marks the largest private sector investment in Ohio’s history. It is projected to generate 3,000 full-time jobs, along with 7,000 construction jobs. Furthermore, it is expected to have a significant ripple effect on the local economy, creating tens of thousands of additional jobs in various sectors, including healthcare, housing, engineering, and entertainment. The annual payroll generated by the Intel project is estimated to reach $405 million.
In addition to the $600 million grant, Ohio is providing $700 million for infrastructure improvements in the region. The state is also offering $650 million in income tax incentives over 30 years based on the number of workers Intel hires. JobsOhio, Ohio’s economic development organization, contributed $150 million in economic development and workforce grants, primarily used to purchase the nearly 1,000 acres of land where the factories are being built
To fulfill its commitment to providing necessary infrastructure, the city of New Albany has entered into a development and supply agreement with Intel. The agreement outlines milestones for the different phases of the Intel project, securing road, water, and sewer services to the site.
As part of the agreement, the city has already completed improvements to Jug Street and extended Harrison Road, with future roadwork planned. Water access has been established, including the installation of a main water pipeline, while the initial phase of sanitary sewer infrastructure has also been completed
The collaboration between Ohio and Intel is a significant step toward establishing Ohio as a prominent hub for technology and semiconductor manufacturing, earning the state the title of the “Silicon Heartland.” Governor Mike DeWine expressed pride in the transformative investment and emphasized Ohio’s attractiveness to companies like Intel due to its favorable business climate, strategic location, and skilled workforce.
