The Biden administration announced that the U.S. Department of Commerce awarded Intel up to $7.865 billion in direct funding under the CHIPS incentives program for commercial fabrication facilities.
The award will support Intel's expected Columbus-area investment of nearly $90 billion by the end of the decade, which is part of the company's overall $100+ billion expansion plan, the administration said. The government said it will disburse funds based on Intel's completion of project "milestones."
State leaders have advocated 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 objective of making the most advanced computer chips in America."
"The DeWine-Husted administration has never wavered in its pledge to bring these chip manufacturing plants to Ohio. The work to build the Silicon heartland now moves forward with even more certainty, advancing our economic and national security to the benefit of the working people of Ohio and America," the men said.
"The CHIPS for America program will supercharge American innovation and technology and make our country more secure — and Intel is playing an important role in the revitalization of the U.S. semiconductor industry through its unprecedented investments across Arizona, New Mexico, Ohio, and Oregon," U.S. Secretary of Commerce Gina Raimondo said.
The planned investment by Intel has had ripple effects across the state. In Dayton, Libra Industries invested $1.8 million in a 5,000-square-foot clean room to better serve semiconductor-industry customers — with the expectation that up to 26 employees will be added to the company's workforce.
Intel began construction in late 2022 and is building the two plants simultaneously, said Linda Qian , communications director for the California-based company's Ohio community relations team. As of May this year, 1,000 construction workers were on site, a number the company 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 chief executive of the Ohio Chamber of Commerce, in his own statement.
While the funding will be welcomed, Intel is facing significant challenges, laying off thousands of workers and being eyed (according to some reports) as a potential acquisition target. S&P Global said this month that Nvidia would replace shares of Intel in the Dow Jones Industrial Average array of stocks.
In September, Intel CEO Pat Gelsinger said the $20 billion computer chip manufacturing facility that Intel is building in New Albany, Ohio will be spun off into a new company as part of a restructuring. The plants will fall under a subsidiary of Intel.
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