Nov. 26 – Intel gets the federal funding it says it needs to build semiconductor factories in the Columbus area.
The Biden administration announced that the U.S. Department of Commerce has awarded Intel up to $7.865 billion in direct funding under the CHIPS incentive program for commercial manufacturing facilities.
The award supports Intel’s expected investment in the Columbus area of nearly $90 billion by the end of the decade, which is part of the company’s overall $100+ billion expansion plan, the government said. The government said it will disburse money based on Intel’s completion of the project’s “milestones.”
State leaders have been advocating for the funds for months.
In a joint statement early Tuesday, Ohio Gov. Mike DeWine and Lt. Gov. Jon Husted called the news a “much-needed step forward in the important goal of making the most advanced computer chips in America.”
“The DeWine-Husted administration has never wavered in its commitment to bringing these chip factories to Ohio. “The work to build Silicon’s heartland now moves forward with even more certainty, advancing our economic and national security for the benefit of the working people of Ohio and America,” the men said.
“The CHIPS for America program will boost American innovation and technology and make our country safer – and Intel is playing an important role in the revitalization of the American semiconductor industry through its unprecedented investments in Arizona, New Mexico, Ohio and Oregon,” US Secretary of Commerce Gina Raimondo said this.
The planned investment by Intel has had ripple effects across the state. In Dayton, Libra Industries invested $1.8 million in a 50,000-square-foot cleanroom to better serve semiconductor industry customers – expecting to add up to 26 employees to the company’s workforce.
Intel began construction in late 2022 and is building the two factories at the same time, said Linda Qian, communications director for the California-based company’s community relations team in Ohio. As of May this year, there were 1,000 construction workers on site, a number expected to grow to 7,000.
“Today’s announcement strengthens America’s national security and makes microchip manufacturing viable in the U.S. It’s a great day to be a Buckeye,” said Steve Stivers, president and CEO of the Ohio Chamber of Commerce, in his own statement.
While the funding will be welcome, Intel faces significant challenges, laying off thousands of employees and (according to some reports) being eyed as a potential takeover target. S&P Global said this month that Nvidia would replace Intel’s shares in the Dow Jones Industrial Average set of stocks.
In September, Intel CEO Pat Gelsinger said the $20 billion computer chip manufacturing facility Intel is building in New Albany, Ohio, will be spun off into a new company as part of a restructuring. The factories will be owned by an Intel subsidiary.
