Intel To Build Plant In Columbus!

The design landscape for Intel's largest processing plant locating to Columbus, Ohio.

The Intel Corporation announced they will build a facility in the Columbus suburb of New Albany, a city located in Franklin and Licking County, Ohio. The governor of the state, its two senators and two lawmakers representing Columbus were there to celebrate the announcement.

Ohio beats out California, Texas and North Carolina. These three states are known for technological innovation. 

President Joe Biden will get credit for this. However, the Republicans will rewrite history and claim Washed Up 45 or the state's governor getting the credit. 

The 1,000-acre location will initially play host to two chip factories, and is set to directly employ at least 3,000 people and “tens of thousands” more across suppliers and partners. Construction is reportedly due to kick off this year, with the site becoming operational in 2025.

In an interview with Time, Intel CEO Pat Gelsinger said the company expects the site to become “the largest silicon manufacturing location on the planet,” adding that it could eventually expand to 2,000 acres with eight fabs. After helping to establish Silicon Valley, Gelsinger said the new site could become “the Silicon Heartland.” Intel plans to invest up to $100 billion in the site over the next decade, as well as around $100 million in partnership with Ohio universities, colleges, and the US National Science Foundation to foster new talent.

Intel already has U.S. factories across several states including Oregon, New Mexico, and Arizona. Ohio represents its first manufacturing expansion into a new state in over 40 years, the New York Times reports. Intel has been aggressively ramping up its investments in manufacturing capacity under its new CEO, who’s already announced a $20 billion expansion of the company’s existing Arizona complex.

Biden promises jobs to America's heartland. He worked with Intel CEO to get Ohio the facility built.

Expanding into a state without an existing chip manufacturing presence brings challenges, like acquiring the correct permits, raw materials and supplies, and production machines, the NYT notes. But New Albany is known for its inexpensive land, and any manufacturing plant could benefit from engineering graduates at nearby Ohio State University.

Intel’s search for its new manufacturing hub reportedly saw states competing for the huge economic opportunity a new plant represents. Time reports that at least one other state offered more subsidies, but Ohio was a better regulatory fit and Intel didn’t want to displace current residents. It’s a marked contrast from Amazon’s hyper-competitive bidding process that eventually awarded a second HQ to New York, which it shelved following backlash from residents and local lawmakers.

The announcement comes as the world continues to grapple with an acute shortage of computer chips that has impacted everyone from games console manufacturers to automakers. The shortage has shed light on the decades-long shift of chip manufacturing from the U.S. and Europe to Asian countries, particularly Taiwan where Taiwan Semiconductor Manufacturing Company (TSMC) in headquartered. To help reverse the shift, the U.S. Senate approved a $52 billion subsidy package for the chip industry last June which would offer grants to companies building new US factories, but it is yet to pass through the House.

Ohio governor DeWine celebrates Intel being built in the state.

Intel’s competitors TSMC and Samsung have announced new US-based manufacturing investments of their own in Arizona and Texas, respectively. But in some officials’ eyes, Intel has the advantage of being a homegrown U.S. company, while TSMC’s proximity to China has worried Pentagon officials.

“Today’s investment marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership,” said Intel CEO Pat Gelsinger in a statement. “Intel’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come. Intel is bringing leading capability and capacity back to the United States to strengthen the global semiconductor industry.”