Intel to build two fabs in Ohio for $20B, launch $100M college partnership

Intel will build two chip factories in New Albany, Ohio, at cost of more than $20 billion on a mega-site that could eventually have eight fabs total valued at $100 billion, creating tens of thousands of long-term jobs for the area.

The chip giant also said it will spend $100 million over a decade to build a partnership with universities and community colleges in the region to include labs and curriculum leading to undergrad and associate degrees.

The new fabs in Ohio represent the first time Intel has expanded into the Midwest. The development is being dubbed the Silicon Heartland, with the $20 billion touted as the largest single private sector investment in the state’s history. Construction is expected to begin in late 2022 with chip production coming online in late 2025. New Albany is in Licking County outside Columbus, the state capitol of Ohio.

Intel broke down the jobs this way: 3,000 Intel jobs, 7,000 construction jobs over the course of the multi-year build and tens of thousands of added local long-term jobs, including those from supporting businesses.  The $100 million academic investment includes partnerships with local universities and community colleges for research projects and lab investments, including designing a chip-focused curriculum for associate and undergraduate degree programs.

The site will be designed and constructed with green building ideals, with a goal for the new factories to be powered by 100% renewable electricity and to a achieve net positive water use and zero total waste to landfills.

Intel CEO Pat Gelsinger was expected to join Ohio Gov. Mike DeWine at a celebratory event in Newark, Ohio, on Friday. Over recent months, Intel has outlined plans for $100 billion in new fabs, including two for Arizona.

Gelsinger has also lobbied with other chip CEOs for billions in  federal government grants and tax incentives  to bring chip fabs to the U.S. amid a decades-long decline in American chip production compared to other regions in the world.  He announced in March 2021 plans for Intel to serve as a fabrication provider for other chip designers, as well as well as Intel, under an integrated device manufacturing model, dubbed its IDM 2.0 strategy.