The state on Monday announced it awarded the money to the semiconductor company as part of the more than $2 billion in state and local incentives that Intel was promised for picking Ohio for the project.
In return, Intel committed to creating 3,000 jobs with an annual payroll of $405 million as part of its investment, the state’s largest economic development project, by Dec. 31, 2028.
“This commitment is another investment toward making Ohio the new Silicon Heartland,” Gov. Mike DeWine said in a statement. “Intel’s new facilities will create thousands of high-paying jobs and continue to position our state to thrive far into the future.”
In a statement, the company said: “Intel is proud to partner with the great state of Ohio as we build the Silicon Heartland. We are grateful for their ongoing support, which is helping us create a more resilient supply chain and increase manufacturing of leading-edge semiconductor chips right here in the United States.”
The $600 million reshoring grant aims to bring production of semiconductor chips back to the U.S. that power everything from cellphones to cars to military equipment. The industry said the cost of building the plants in the U.S. is 20% to 30% higher than in Asia.
The federal government, meanwhile, created a $52.7 billion program to incentivize chipmakers such as Intel, which confirmed it applied for aid for the Licking County campus.
Intel required to file annual performance reports
As part of the onshoring grant, starting March 1, Intel will be required to report annual performance, including information on how it spends the grant money, the total investment per year and the total amount invested in the project. It will include the number of new jobs and payroll created each year, as well as a description of the construction activity for each factory.
The report will include the number of purchases made from suppliers, a summary of construction activity, the amount of money spent on research and development and the number of people working on the site, along with the counties where they live.
If Intel does not meet its fixed asset investment and job creation commitments as outlined in the grant agreement, the state may claw back the money provided to Intel.
What has Intel done so far at the site?
As part of the announcement of the award, the state laid out what Intel has done so far in Licking County:
- Intel spent or committed $3 billion so far on the project.
- About 92% of the construction workers on site are Ohioans, and construction workers come from 59 of Ohio’s 88 counties.
- Beyond the 3,000 jobs Intel promised to create, the project is expected to create as many as 7,000 construction jobs and thousands of others.
Since the official groundbreaking ceremony a year ago, Intel completed excavation and preparation work for both factories, most of its stormwater management system and 40% of its infrastructure for electricity, gas, water and sanitary sewer.
The onsite concrete plant has supplied most of the concrete needs for the project. Already 16,000 cubic yards of concrete have been poured for the site.
Walls and support columns for the first sub-utility trench are being built.
What other incentives is Intel receiving?
Beyond the $600 million onshoring grant, the state is providing $500 million for water, wastewater and local road infrastructure, as well as $300 million for an onsite water reclamation facility.
The company also will receive $650 million over 30 years in state income tax incentives based on the number of workers Intel hires.
On top of the state’s incentives, JobsOhio, the state’s economic development arm, kicked in $150 million in economic development and workforce grants, with most of the money used to buy the nearly 1,000 acres where the plants are being built, off Mink Street in the northeast corner of New Albany.
Source : Dispatch