New Albany Lands Intel and Historic $20B Capital Investment

Intel recently announced plans to invest an initial $20+ billion in the construction of two state-of-the-art chip manufacturing factories on a nearly 1,000-acre site in New Albany to boost production of advanced semiconductors to power a new generation of Intel products. Intel also pledged an additional $100 million for partnerships with educational institutions to build a pipeline of talent and bolster research programs in the region.

As the largest single private-sector investment in Ohio history, the initial phase of the “Silicon Heartland” project is expected to create 3,000 Intel jobs and 7,000 construction jobs over the course of the build, and support tens of thousands of additional local long-term jobs across a broad ecosystem of suppliers and partners. The city stands to net about $8.1 million a year in new income taxes from the 3,000 Intel jobs alone, based on the average $135,000 salary.

The Ohio Department of Development has pledged $2 billon in incentives while JobsOhio is contributing $150 million in grants for economic development and workforce training. New Albany will provide a 30-year, 100% property tax abatement on the value of the new Intel buildings, double the usual 15-year maximum under a new state budget provision for “mega” projects. The abatement does not apply to the land which will boost revenue to schools, the county and other tax authorities as the value increases over time.

Spanning nearly 1,000 acres in Licking County, the “mega-site” can accommodate a total of eight chip factories – also known as “fabs” – as well as support operations and ecosystem partners. At full buildout, the total investment in the site could grow to as much as $100 billion over the next decade, making it one of the largest semiconductor manufacturing sites in the world. The scope and pace of Intel’s expansion in Ohio also will depend heavily on funding from the CHIPS Act currently pending in Congress.

Construction of the first two factories is expected to begin in summer of 2022. Production is expected to come online in 2025, when the fab will deliver chips using the industry’s most advanced transistor technologies.

“Intel’s new facilities will be transformative for our state, creating thousands of good-paying jobs in Ohio manufacturing strategically vital semiconductors,” said Ohio Gov. Mike DeWine.  “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.”

According to Intel CEO Pat Gelsinger, “These factories will create a new epicenter for advanced chipmaking in the U.S. that will bolster Intel’s domestic lab-to-fab pipeline and strengthen Ohio’s leadership in research and high tech.”

In much the same way that the New Albany Personal Care and Beauty Campus’s vertically integrated model attracted global industry leaders to seamlessly turnkey product design, manufacturing, labeling, packaging and distribution in one location, Intel is expected to attract partners and suppliers needed to support its operations. As part of today’s announcement, Air Products, Applied Materials, LAM Research and Ultra Clean Technology have indicated plans to establish a physical presence in the region to support the buildout of the site.

To help develop and attract a pipeline of skilled talent from within the region, Intel plans to invest approximately $100 million over the next decade in partnership with Ohio universities, community colleges and the U.S. National Science Foundation. These partnerships will span a range of activities, from collaborative research projects to building semiconductor-specific curricula for associate and undergraduate degree programs.

The new site will be designed and constructed with green building principles, and the new factories have a goal to be powered by 100% renewable electricity and to achieve net positive water use and zero total waste to landfill in support of Intel’s 2030 sustainability goals.