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WATCH: Gov. DeWine announces Intel building $20B chip facility in Ohio amid global shortage

Intel Plant-Ohio
Posted at 10:36 AM, Jan 21, 2022
and last updated 2022-01-21 17:24:07-05

COLUMBUS, Ohio (AP) — Intel will invest $20 billion in a new computer chip facility in Ohio amid a global shortage of microprocessors used in everything from phones and cars to video games.

Gov. Mike DeWine held a news conference about Intel Friday around 2:30 p.m. You can watch it in the player below:

The US share of the worldwide chip manufacturing market has declined from 37% in 1990 to 12% today and shortages have become a potential risk.

Two chip factories in Licking County on the 1,000-acre site just east of Columbus are expected to create 3,000 company jobs and 7,000 construction jobs, and to support tens of thousands of additional jobs for suppliers and partners.

The direct Intel jobs will pay an average of $135,000 a year plus benefits.

Construction is expected to begin in late next year, with production coming online at the end of 2025.

In total, the project will add nearly $3 billion to the state's annual gross state product.

According to DeWine's office, it's the largest single private sector company investment in the state's history.

“Today’s announcement is monumental news for the state of Ohio,” said DeWine. “Intel’s new facilities will be transformative for our state, creating thousands of good-paying jobs in Ohio manufacturing strategically vital semiconductors, often called ‘chips.’ Advanced manufacturing, research and development, and talent are part of Ohio’s DNA, and we are proud that chips — which power the future — will be made in Ohio, by Ohioans.”

Thirty-two years ago, the United States led worldwide chip production, but as years passed, production capacity dropped from around 40% to around 12% in 2020. A further drop is expected, but the move by Intel could stop the trend.

According to DeWine's office, "the confluence of geopolitical tensions and pandemic disruptions starkly exposed this danger to the U.S. economy: decades of offshoring the manufacturing of chips — a foundational technology that makes modern life possible — to Asia has stagnated innovation and left the U.S. vulnerable to supply chain disruptions that have crippled major sectors of our national and state economy, and harmed businesses and consumers."

By having chip production here in Ohio, its helps not only the country's national security interests but its "industrial competitiveness," DeWine's office said. Chip technology is used in nearly all business sectors, including:

  • Automotive
  • Advanced mobility
  • Aerospace
  • Aviation
  • Consumer goods
  • Data centers
  • Defense
  • Healthcare
  • Technology

"Just as candles gave way to light bulbs, carriages gave way to cars, and now engines to battery packs, we must continue to attract the businesses and jobs of the future to make sure Ohioans, their children, and their grandchildren can prosper here,” said Lt. Governor Jon Husted. “With the project announced today, we are establishing an entirely new industry sector that currently does not exist in our state, and along with it, we are rebuilding for America a sustainable, resilient domestic supply chain of semiconductors, which is critical to our national and economic security."

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