Ohio Issues $600M Onshoring Grant to Intel Corp.

COLUMBUS, Ohio – The state is disbursing a $600 million onshoring grant to Intel Corp. to support the company’s manufacturing campus under construction in Licking County.

The grant provides $300 million apiece for two chip factories, or fabs, to help finance Intel’s commitment to create 3,000 jobs, $405 million in annual payroll and more than $20 billion in fixed asset investment by Dec. 31, 2028.  

“This commitment is another investment toward making Ohio the new Silicon Heartland,” Gov. Mike DeWine said. “Intel’s new facilities will create thousands of high-paying jobs and continue to position our state to thrive far into the future.” 

Intel has invested more than $3 billion combined between the money that has been spent and the current contractual commitments for the site, which the company has dubbed “Ohio One.” 

Intel has grown its Ohio supplier footprint from about 150 when the project first was announced to more than 300 current suppliers, according to the governor’s office. Those suppliers come from every region in Ohio and include businesses from more than 38 counties, including Trumbull.

About 92% of the construction workforce on-site are Ohio residents, and construction workers from 59 of Ohio’s 88 counties – including Mahoning, Trumbull and Columbiana – have contributed so far. 

In addition to the new full-time jobs at Intel, the project will also create 7,000 jobs in construction and tens of thousands of jobs in numerous other fields, a news release states. 

“As the project quickly builds out, we are moving forward with our growth strategy and partnership with Intel,” Lt. Gov. Jon Husted said.  “Ohio is delivering on its commitments, and this sends a message to the world: We are dedicated to helping Intel build the Silicon Heartland here in Ohio.” 

Since holding its ceremonial groundbreaking in September 2022, Intel has been preparing the 926-acre site and building the fabs. 

The company has completed full-site leveling, grading, excavation and preparation for both fabs, has produced most of its site stormwater management system and 40% of its permanent site utilities infrastructure for electricity, gas, water and sanitary sewer. In addition, it has executed its first on-site concrete plant, supplying most of the site’s concrete needs, and has placed 16,000 cubic yards of concrete. Walls and support columns for the first sub-utility trench are also in progress. 

Additional support being provided by the state includes $500 million for water, wastewater and local road infrastructure, as well as $300 million for an on-site water reclamation facility.  

“The Intel project is life changing for so many Ohioans,” said Lydia Mihalik, director of the Ohio Department of Development. “This commitment shows that Ohio is the place to be for companies looking to grow and for people looking for new opportunities.” 

As part of the onshoring grant agreement, beginning March 1, Intel is required to provide an annual performance report that includes the amount of grant funds distributed and how the funds were expended, the total investment per year and the total amount invested cumulatively in the project. It also will include the number of new jobs and payroll created each year, as well as a description of the construction activity for each of the two fabs. 

The company will also report the aggregate amount of purchases made from all suppliers, including megaproject suppliers, a summary of any construction activity at the site, the aggregate amount expended on research and development activities at the site and the total number of employees working at the site, along with the counties where they live. 

It also will provide a summary of the supply-chain activity in support of the project that includes a list of the top 25 suppliers in Ohio with which the company made the most purchases in the past year. 

If Intel does not meet its fixed asset investment and job creation commitments, the grant agreement executed in June enables the state to clawback funds provided to Intel through the onshoring grant.

Pictured at top: An artist rendering of the planned Intel project in Licking County. (JobsOhio)

Published by The Business Journal, Youngstown, Ohio.