Ohio offered Intel Corp. incentives worth roughly $2 billion to secure a new $20 billion chipmaking factory that the company says will help alleviate a global shortage and create a new technology hub in the Midwest.
Intel CEO Patrick Gelsinger, left, talks with Ohio governor Mike DeWine during the announcement on Friday Jan. 21, 2022 in Newark, Ohio, that Intel will invest $20 billion to build two computer chip factories on a 1,000-acre site in Licking County, Ohio, just east of Columbus.
Santa Clara, California-based Intel, the world's second biggest chipmaker, announced a week ago it had selected a site outside Columbus for two new chip manufacturing facilities. Shortages of computer chips, which are mostly made in Asia and used in everything from handheld video games to automobiles, have become a growing concern and were exposed in the U.S. and Europe during the pandemic.
Ohio's offer includes $600 million to help Intel offset the cost of building the factories, which is more expensive than it would be in Asia, said Lydia Mihalik, the state's development director. The state's share will be money well spent because the Intel facility will not only create jobs, but also make Ohio more attractive to industries such as auto, aviation and defense that rely on chips, Mihalik said.
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Ohio promised Intel more than $2 billion in state incentives to land computer-chip megaprojectThat’s likely the largest economic incentive package in Ohio history, Mihalik said, and it doesn’t include $150 million from JobsOhio, the state’s economic development non-profit, as well as millions more in local-government money.
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