Biden, DeWine and Intel praise chip factory for Ohio

NEWARK — The celebration of the largest economic development project in Ohio’s history stretched from Washington, DC, to Newark on Friday.

Local, state and federal leaders from President Joe Biden to Gov. Mike DeWine hailed Intel’s $20 billion investment to build two semiconductor factories on land that will be annexed to New Albany from the township of Jersey.

“This is a major win for Ohio,” Gov. Mike DeWine told about 200 people at the Midland Theater in Newark, not far from where Intel is expected to break ground later this year. “It really is a game changer for our economic future.”

For the first time, the state revealed that the incentives it will provide to the Silicon Valley-based chip company will likely exceed $1 billion.

Lieutenant Governor Jon Husted told the public that the incentives will cost the state 6 cents for every dollar invested by Intel. For an investment of $20 billion, this is equivalent to $1.2 billion.

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In return, Ohio will get 3,000 jobs paying an average of $135,000 a year, he said. There will also be 7,000 construction jobs and thousands more indirect jobs in the region.

“It’s an investment that will likely pay dividends for generations,” he said.

Investments by Intel and other chip companies are intended to stem a global chip supply shortage that has left car parks empty and consumers struggling to buy appliances and other goods.

“Intel is coming to Ohio,” CEO Pat Gelsinger said to applause. “This is our first major site announcement in 40 years. When we come to a site, we build for a long time.”

In Washington, President Joe Biden hailed the historic investment in American workers and said the project will promote economic and national security as the nation becomes more reliant on semiconductor chips.

The factories will establish America in the global marketplace as a massive producer of semiconductor chips, which help power many digital and electronic devices, and elevate the nation’s status as a manufacturing powerhouse, Biden said. The new plants will also strengthen U.S. resilience in the face of global supply chain disruptions and inflation, an issue that the COVID-19 pandemic has made worse.

“Being able to say ‘Made in Ohio’. Made in America.’ What we could still say 25, 30 years ago. That’s what it’s all about,” Biden said. “We’re going to brand everything we can ‘Made in America,’ especially those computer chips.”

As he did in Newark, Gelsinger urged Congress to pass the bipartisan Creating Good Semiconductor Incentives for America Act, or CHIPS Act, which would provide $52 billion in investment. dollars in semiconductor factories like the ones planned in Ohio and would address the long-term impacts of the semiconductor shortage.

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“We welcome the opportunity to work with President Biden, federal and state governments to turn the turmoil of this time into a recovery that creates breakthrough technology to improve the lives of every person,” Gelsinger said in Washington. .

Biden also lobbied Congress to pass the bipartisan infrastructure bill, the U.S. Innovation and Competition Act, which aims to provide $90 billion to boost research, development, manufacturing and supply chain in America. He said this act would continue the investment in the dignity and pride of the American worker.

“I want other cities to be able to make announcements like the one being made here today,” Biden said. “Let’s do this for the sake of our economic competitiveness and our national security. Let’s do it for the cities and towns across America working to get their share of the global economic package.

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@BizMarkWilliams

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