CHIPS Ahoy! Issue 1

Intel in Ohio: Where we are and how we got here

Back in 2022, Intel committed to building two semiconductor fabrication plants in New Albany as part of a multi-billion dollar investment in the state. The corporation made that commitment before receiving any funding from the federal CHIPS and Science Act, which was passed later that year.

The state of Ohio awarded Intel a package of incentives including a $600 million grant and $400 million to support roads and infrastructure. Once those dollars are spent, they’re gone, whether the plants are operational or not. The state also plans to spend an additional $300 million to build a water reclamation facility for Intel to use on the campus.

Originally projected to begin operations in 2025, Intel now says that, by 2030 or 2031, one of those plants may be open. A longer timeline means the project will create fewer construction jobs — 2,000 fewer than initially promised.

Intel’s problems aren’t limited to the Ohio One project: At the end of last year, then-CEO Pat Gelsinger retired (or was forced to resign, depending on who you ask).  Its stock has plummeted, and rumors have been circulating that the company may be acquired (at least in part) by a competitor. 

Whatever happens to the chip-making giant, Ohio has already provided hundreds of millions of dollars in direct funding and special tax breaks to support Ohio One. Although Attorney General Dave Yost complained recently that the agreement covering the $600 million grant is “so broad you could drive an 18-wheeler through it,” the state can in fact demand repayment if the facilities are not completed by the end of 2028.

Of course, the Ohio One project also hinges on federal funding through the CHIPS and Science Act, which has already provided $1.5 billion in direct funding. It’s unclear what the Trump administration has planned for the future of President Biden’s initiative: At one point the president said he wants it eliminated, though more recently he placed the CHIPS program office under the control of his newly created U.S. Investment Accelerator. In our next issue, we’ll take a closer look at how that agency could impact CHIPS communities and families, especially in New Albany.

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