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Intel Announces New Ohio Fab Facility to Combat Global Chip Shortage

By BayArea follow BayArea   2022 Jan 27, 9:46am 355 views  17 comments           share      

Small town outside of Columbus (New Albany)

Shovel hits the soil end of 2022, production 2025

Avg employee salary: $135k

https://www.npr.org/2022/01/21/1074733306/intel-ohio-computer-chips?source=patrick.net

Investment property on the perimeter is very tempting.


1   WookieMan   2022 Jan 27, 9:59am  

BayArea says
Investment property on the perimeter is very tempting.

Probably too late. Two layers. One is this is publicity and a factory won't even get built. Two, all the big players in property already knew about this in the region. I've seen it happen a bunch. News is a lagging indicator. Everything worth buying up is already accounted for and is going to be held.
2   DooDahMan   2022 May 1, 2:11am  

How Intel plans to ensure the region benefits from its massive investment

Intel wants to be a good neighbor in Central Ohio.

To do this, the tech giant is pledging "historic engagement" to make sure that the area benefits from its initial $20 billion investment to construct a semiconductor fabrication campus in Licking County, Jason Bagley, the company's senior director of state government relations, said at Thursday's Columbus Opportunity Forum. This pledge includes engagement with schools and nonprofits, as well as the creation of thousands of jobs.

The firm recently announced two hires for its Ohio campus. Longtime company employee Jim Evers will serve as the site's general manager and Emily Smith will be the site's public affairs director.

"One of the jobs that Emily has is to work with our community and make sure that Intel's understanding what those issues are in the community and that we're contributing, that we're bringing intellectual capital," Bagley said. "There's going to be a community partnership, we're going to be standing up some philanthropic effort. Intel, one of our values is to be a good neighbor, we want to be an asset in the communities where we operate."

Intel employees are encouraged to volunteer at schools and and area nonprofits, Bagley said. For every hour that an employee does so, the company's foundation contributes money to the organization.

"There's a money component to what we'll be giving to drive various projects," Bagley said. "There'll be an ongoing engagement there around education, as well as environmental projects and things of that nature."

The tech giant expects to create thousands of jobs, ranging from construction to direct onsite roles.

Bagley said those interested in jobs at the facility should apply via the community website. All potential hires will go through the job portal.

The company will be working with JobsOhio and other groups to help find "the best brightest that Ohio has to offer," Bagley said.

"It's going to attract people that want to change the world," Bagley said. "It's going to attract people who want to make a difference. It's going to attract people that are engaged in the knowledge economy; and they're going to add to the fabric of the community in Ohio."

https://www.bizjournals.com/columbus/news/2022/04/28/how-intel-plans-to-give-back-to-central-ohio.html?source=patrick.net
3   DooDahMan   2022 May 1, 2:15am  

Ohio incentives for Intel chip plant will top $2B, including $600M "onshoring" grant

Ohio's biggest economic development project in history means the state is ponying up its biggest incentive package.

The state laid out more than $2 billion in incentives that it will provide to Intel, which announced a week ago that it will invest $20 billion in building two factories, called fabs, in Licking County to make semiconductors.

On top of the state's incentives, JobsOhio, the state's economic development arm, will kick in $150 million in economic development and workforce grants and the city of New Albany said it will offer a 30-year, 100% property tax abatement on the buildings that Intel constructs in the city's business park.

"As we've all seen over the past few years, we've got to make more products here in America, and we want to make them here in Ohio so that we're no longer held hostage by disruptions in the global supply chain," Lydia Mihalik, director of the state's Department of Development, said Friday at a news conference where she detailed the incentives. "When you look at what we're giving Intel to what we're getting in return some may wonder if its worth it, the answer is yes."

Intel formally announced plans for the factories, called fabs on January 21. They will employ 3,000 workers at an average salary of $135,000.

On top of that, the project is expected to create 7,000 construction jobs and 10,000 indirect jobs.

The state's commitment is broken into three parts: $600 million to Intel that reflects the cost of developing chip factories in America; $691 million in infrastructure improvements in the region; and $650 million over 30 years in income tax incentives based on the number of workers Intel hires.

"Ohio has been presented with a historical opportunity to take the lead in re-establishing America's dominance in making semiconductors,'' Mihalik said.

Mihalik called the $600 million an onshoring grant that is intended to offset Intel's cost of building the plants in America where costs can be 20% to 30% higher than in Asia.

The grant is $300 million per plant with a goal of completing the plants by 2025.

Mihalik said the grant is performance-based, meaning that if Intel doesn't live up to its promise, the state will work to recover the money.

Of the $691 million in local infrastructure improvements, $300 million will be spent on a water reclamation facility, $290 million on road work and $101.2 million to build out water and wastewater capacity upgrades.

The state income tax incentives will have to be approved by the Ohio Tax Credit Authority while state legislators will have to sign off on the grants and infrastructure money.

In the early stages of wooing Intel last summer, Ohio changed state law to sweeten the potential tax breaks for what are classified as "megaprojects" like what Intel wants to do.

"Intel's investment in Ohio is unprecedented in size and importance for America as it adds a new industry and generations of potential for Ohioans," JobsOhio President and CEO J.P. Nauseef said in a statement.

As for New Albany, the value of the property tax abatement will depend on the value of the buildings that Intel constructs on the site.

The abatement is consistent with what New Albany has offered to other companies that have located in the park the past 12 years. The difference is that the abatement will remain in effect for 30 years under the new mega-projects legislation.

New Albany will share income tax revenue from workers at the park with local schools and communities to make up for some of the property tax abatement.

Global supply chain problems during the pandemic have created a massive shortage of chips, the brains that run everything from cell phones to cars to appliances to industrial and medical equipment.

Currently, 12% of the world's chips are made in the US, down from 37% in the 1990s, according to industry officials. About 80% are made in Asia.

Chips are an integrated circuit or small wafer of semiconductor material embedded with integrated circuitry.

As a result of the shortage, semiconductor companies have started the long process of developing new US sources of chips. The process figures to take several years before the plants would be up and running.

In addition to the local and state incentives, Intel figures to be a big winner assuming Congress passes the funding for the CHIPS Act, a $52 billion proposal meant to bring back chip production to the United States.

CHIPS was approved in January 2021 as part of the most recent National Defense Authorization Act, but without funding.

In June, the Senate passed the Innovation and Competition Act. The House is expected to take up the legislation in February.

Intel has said eventually, there could be eight plants at the site with 10,000 workers, and that the location could become the largest semiconductor operation in the world, meaning that Intel could be eligible for additional tax incentives in the future.

The plants will be built on 3,190 acres that New Albany is annexing from Jersey Township in Licking County.

Intel plans to use nearly 1,000 acres and has an option on another 500. About 250 acres also have been set aside for Intel suppliers.

https://www.msn.com/en-us/news/us/ohio-incentives-for-intel-chip-plant-will-top-2b-including-600m-onshoring-grant/ar-AATlSfQ?source=patrick.net
4   DooDahMan   2022 May 25, 5:16am  

When is Intel or a consortium of U.S. Manufactures going to make a 100% matching announcement to this announcement from Samsung ? My guess is never since it is easier and much less expensive to sit back and complain about the competition

South Korea’s – largest conglomerate Samsung announced Tuesday plans to invest a combined 450 trillion won ($355.8 billion) and create some 1 million jobs in Korea over the course of five years — the largest ever in the group’s history — in order to maintain its competitive edge and navigate uncertainties.

Samsung also chose chip design, foundry and biotechnology as the major three pillars of its future growth in its investment guidance.

The groupwide plan is expected to set the stage for the early arrival of the world‘s most advanced technologies in the fields of semiconductors, biotechnology, artificial intelligence and telecommunications.

The size of the five-year spending will grow 30 percent compared with that of the previous five years Of the total investment commitment, 360 trillion won will go to South Korea, according to the company.

https://asianews.network/samsung-unveils-largest-ever-450-trillion-won-investment-for-chip-supremacy/
5   HunterTits   2022 May 25, 5:18am  

All old news. Didn't need the Dooshit plastered all over this thread to reiterate that.
6   DooDahMan   2022 May 25, 5:40am  

Old news from 24 hours ago ? Wow, huh

The only old news is the deafening silence from Intel and others here in the U.S. not being able to match Samsung's announcement and as such companies here will continue to whine and cry about the competition while doing massive stock buybacks instead.
7   zzyzzx   2022 May 25, 5:56am  

DooDahMan says
while doing massive stock buybacks instead.


Intel is doing stock buybacks? You wouldn't know that be looking at their stock price.
8   HunterTits   2022 May 25, 7:18am  

DooDahMan says
Old news from 24 hours ago ? Wow, huh


Old news as in this facility has been planned even before Biden came into office.

God the level of flat out bullshit fuelled by your gross ignorance that you post here. A-fuck got kicked off for less.

And what happened to putting me on ignore? Better complain to @Patrick about that functionality is no longer working.
9   DooDahMan   2022 May 25, 11:12am  

Old news as in this facility has been planned even before Biden came into office.

What facility ? They announced plans (a detailed proposal for doing or achieving something)

Beneficiaries of the investment will not be limited to Samsung‘s chip business. Its contract-based drug manufacturing operations will be boosted by the spending to expand production capacity, while its pipeline of biosimilar products will be diversified. Also, Samsung looks to push for the arrival of a 6G communication standard, believed to be 50 times faster than the world’s most-advanced 5G standard in theory.

These plans are expected to nurture a combined 1 million jobs for the tech giant and its vendors, according to Samsung. This includes Samsung‘s own plan to hire some 80,000 employees in the next five years.

The ignore is working just fine - when you are not logged in you can read everything
10   DooDahMan   2022 May 25, 11:14am  

zzyzzx says
Intel is doing stock buybacks


Intel says that since 2005, its board authorized its executives “to repurchase up to $110 billion (of stock), of which $7.2 billion remained available.”

Intel Wants Public Money to Make Rich Shareholders Richer

https://www.jacobinmag.com/2022/03/intel-microchip-manufacturing-biden-administration-chips-act-subsidy-stock-buybacks#:~:text=Intel%20says%20that%20since%202005,which%20%247.2%20billion%20remained%20available.%E2%80%9D
11   HunterTits   2022 May 25, 11:25am  

DooDahMan says
The ignore is working just fine - when you are not logged in you can read everything


Then what is the point of putting anyone on ignore and then log out just to see what they write (that you presumably do not want to see) anyway?

#dumbassery
12   HunterTits   2022 May 25, 11:25am  

DooDahMan says
What facility ? They announced plans (a detailed proposal for doing or achieving something)



oh boy...DooDah just posts shit w/o any understanding of what is going on. As usual.
13   Hircus   2022 May 25, 2:30pm  

WookieMan says
BayArea says
Investment property on the perimeter is very tempting.

Probably too late. Two layers. One is this is publicity and a factory won't even get built. Two, all the big players in property already knew about this in the region. I've seen it happen a bunch. News is a lagging indicator. Everything worth buying up is already accounted for and is going to be held.


Some years back, I think 2015 ish, I posted on here about buying homes in the Reno NV area around where the gigafactory was going to be built (Fernley / Sparks / East Reno). I researched how many housing units were within commute distance, typical home sales per year in the area, and how many jobs were being added. It felt like the additional housing demand from the new jobs would be enough to influence prices nearby.

I wanted to, but didn't buy due to being too busy/lazy. But prices appreciated solidly after that. It's hard to say what prices would have done without the gigafactory, as prices pretty much went up nationwide during those years. But I just spot checked a few SFHs in Fernley and they 2-3x'd since that time. Not the only place in the us to see such gains, but still excellent.

I did this maybe a month or 2 after they publicly announced the factory location / jobs / salary etc... I don't recall seeing a spike in home prices at the time, although I never checked volume - maybe the best deals were scooped up by then, but the remainders were still good deals.
15   Hircus   2022 May 25, 2:57pm  

Does anyone know where to find RE price charts by area / zip code? Zillow used to give them by zip, city, and neighborhood, but no more.

edit - realtor.com and redfin have some charts.
16   Hircus   2022 May 25, 3:16pm  

At first I thought "aha, 10% price spike this year might be due to the factory" but even far away in west columbus I see the same price action.
17   DooDahMan   2022 Jun 22, 3:48pm  

Computer chip subsidies face a make-or-break moment in Congress

When the Senate passed a rare bipartisan measure last summer to spend $52 billion subsidizing computer chip manufacturing and research in the United States, it seemed like an easy legislative priority for both parties.

Chips were in such short supply that auto factories were shutting down for weeks at a time, threatening jobs and driving up prices. New cars became so rare that used cars soared in price, often exceeding what they had cost when they were new. Manufacturers of seemingly everything, from products as different as smartphones and dog-washing booths, complained they couldn’t get the chips they needed. The White House called several emergency meetings, and Republicans and Democrats quickly rallied.

But one year later, the funding still isn’t signed into law It took the House until February to agree to the subsidies. Since then, the process of combining the House and Senate bills has been bogged down over disputes about elements of the legislation unrelated to chips, including climate provisions and trade with China. Myriad other issues, including military aid for Ukraine and gasoline price inflation, have also distracted lawmakers.

Proponents of the chips funding say they are now racing to salvage it before Congress breaks for its August recess, after which election season will probably stifle prospects for any big, new legislative packages

More: https://worldnewsera.com/news/entrepreneurs/computer-chip-subsidies-face-a-make-or-break-moment-in-congress/

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