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Intel Now Prepping Ohio Semiconductor Fab

Joseph F. Kovar

‘We are focused now on the initial phase of the project, which includes two factories on approximately 750 acres of land. The precise acreage for the full project is being finalized, as some land will be allocated for city roads and infrastructure,’ an Intel spokesperson tells CRN.

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Intel has officially acquired the land it needs to build its Ohio-based semiconductor manufacturing facilities despite earlier reports that the company is delaying the plant while waiting for Congress to release funding to support a U.S.-based semiconductor industry.

Intel has spent $111 million on 750 acres of land near New Albany, a suburb of Columbus, Ohio, according to a report Wednesday in the Columbus Dispatch.

This follows a report in NBC that construction crews have already started preparing the land for its expansion.

[Related: INTEL DELAYS OHIO CHIP FACTORY AS FEDERAL FUNDING STALLS]

Intel in late June warned that its Ohio fabrication plant would be delayed because Congress has delayed the Creating Helpful Incentives to Product Semiconductors (CHIPS) Act for America, which was expected to be a part of the funding of the new plant. The CHIPS Act was passed early this year, but Congress has not yet appropriated the needed resources despite bipartisan support.

An Intel spokesperson confirmed via email that Intel has started development of the Ohio semiconductor manufacturing plant, although the company did not confirm the $111 million purchase price.

“We are focused now on the initial phase of the project, which includes two factories on approximately 750 acres of land. The precise acreage for the full project is being finalized, as some land will be allocated for city roads and infrastructure,” the spokesperson said.

When asked about how Intel is starting development despite earlier acknowledgement that it is waiting for CHIPS Act funding, the spokesperson said Intel previously emphasized that it was postponing a ceremony, and that the project itself was proceeding.

Intel CEO Pat Gelsinger recently unveiled plans to quickly build a world-class semiconductor manufacturing capability to reduce reliance on third-party fabs for manufacturing, including two huge investments in U.S.-based semiconductor manufacturing.

Intel in January unveiled plans to invest $20 billion-plus to construct two new leading-edge chip factories in Ohio, in addition to the $20 billion it plans to invest in two new fabs in Arizona and $3.5 billion it plans to invest in semiconductor packaging facilities in New Mexico.

Intel is looking to expand its manufacturing footprint across Germany, Ireland, Italy, Poland and Spain with an investment of $87.8 billion over the next decade for building manufacturing plants.

The Ohio-based semiconductor manufacturing plant is expected to create 3,000 Intel jobs and 7,000 construction jobs and was slated for completion in 2025, with total investment in the site reaching as much as $100 billion over the next decade, Intel said at the time.

Intel, in a presentation slide show on the importance of bringing semiconductor manufacturing to the U.S. and of U.S. government support for the move, said it costs about $10 billion to build a semiconductor fab and can take three or four years.

“The private sector cannot succeed alone. Federal investment is essential to level the playing field and support American jobs,” the company wrote.

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Joseph F. Kovar

Joseph F. Kovar is a senior editor and reporter for the storage and the non-tech-focused channel beats for CRN. He keeps readers abreast of the latest issues related to such areas as data life-cycle, business continuity and disaster recovery, and data centers, along with related services and software, while highlighting some of the key trends that impact the IT channel overall. He can be reached at jkovar@thechannelcompany.com.

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