Biden will join Intel executives, Gov. Mike DeWine, and other federal, state and local officials to break ground on the company’s $20 billion pair of chip factories. Intel announced in January that they will be built by 2025 on a 1,000-acre site in Licking County, on the northeast edge of Columbus and about 90 miles from Dayton.
Ultimately the Johnstown site could hold eight chip factories and related facilities, for a total investment of more than $100 billion, according to Intel, which touts the project as Ohio’s largest-ever private economic development project.
Why does it matter to the Miami Valley?
Building the factories is expected to require 7,000 construction workers. Once open, they will employ 3,000 at average salaries of around $135,000, according to Intel. Officials have said many of Intel’s suppliers may also move facilities to Ohio.
“Even though the new Intel facility will be in the Columbus area, we expect a significant number of jobs in the semiconductor supply chain to be located in the Dayton area,” Jeff Hoagland, president and CEO of the Dayton Development Coalition, has said. There should be spinoff benefits for Wright-Patterson Air Force Base, he said.
The groundbreaking was originally scheduled for July 22, but Intel canceled it as Congress debated the CHIPS Act. Intel CEO Pat Gelsinger suggested the company might shift production to Europe without the subsidies in that bill.
Ohio itself promised more than $2 billion in subsidies for the project, plus local property tax abatements. The CHIPS Act as passed includes $52 billion in subsidies and tax credits for manufacturing computer chips domestically; $200 billion for research into artificial intelligence, robotics, quantum computing and other advanced technology; $11 billion to create 20 “regional technology hubs,” connecting research universities with private companies to promote domestic innovation; and several billion for high-tech workforce training. Intel’s Ohio factories could benefit from all parts of that bill.
Are there other benefits?
Concurrent with the groundbreaking, Intel will announce $17.7 million in grants to eight semiconductor education, research and workforce programs at Ohio community colleges and state universities. It’s the first stage in a $50 million educational commitment by the company.
“Intel expects this first iteration of the program to produce nearly 9,000 graduates for the industry and provide more than 2,300 scholarships over a three-year period, fostering a diverse homegrown talent pipeline,” the company said in a news release.
One of those programs will be led by Central State University in Wilberforce, in collaboration with four other schools
“Central State and our collaborative partners including Columbus State Community College, Ohio State University, Stark State College and Wright State University will create a pipeline that produces underrepresented students prepared for Intel careers by giving students knowledge and practical experience in semiconductor fabrication techniques, processes, and equipment by establishing a semiconductor educational program at CSU,” said Jack Thomas, president of Central State.
Programs led by other schools include as collaborators many other area institutions, such as Cedarville University, Miami University, Sinclair Community College and the University of Dayton.
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