Intel has submitted a progress report to the Ohio Department of Development. Its progress in developing two new semiconductor manufacturing facilities in Licking County hasn't been stellar though, far from it. The iconic US chipmaker promised $20 billion of investment in the project and that the new fabs would be operational by 2025. However, the report (PDF) published by Ohio Governor Mike DeWine on Friday suggests that Intel has invested just $1.5 billion and the fabs will be operational "between 2027 and 2028."
Intel outlined the following key points, to mark its progress:
- Intel has spent approximately $1.5 billion through December 31, 2023
- A further $3 billion is contractually committed
- Intel had 69 employees from 14 Ohio counties working at the project site in December
- Construction workers from 75 of Ohio’s 88 counties have contributed to the project to date
- Intel's supplier footprint has grown from 150 to 350 since the project announcement
- Plans are ready for an office building, water treatment, and reclamation facility, and an air separation unit on-site
Keep the above points in mind, if you will, as we recount Intel's announcement in January 2022, and our coverage of the beginning of construction near Columbus, Ohio, in September of the same year.
Intel's $4.5 billion spent or committed is less than a quarter of the $20 billion promised. Moreover, the two first fabs at Intel Ohio should have been operational next year – not a date that could easily be fudged into 2028. We must also remember that Intel has received "more than $2 billion in incentives," towards this project.
Despite clear delays to Intel's previously-promised progress, Ohio politicians still seem pretty happy with the situation. "Construction logistics are quite amazing," enthused Lt. Governor Jon Husted in a state press release. "Barges of equipment are coming up the Ohio river, getting offloaded in Adams County – and then the organization of enormous truckloads of equipment making their way to Licking County – adds to the billions invested already by the company and the growing number of Ohio-based suppliers."
Completion of Intel's promised project would certainly be good for Ohio. It is billed as the largest single private sector company investment in Ohio’s history, after all. It is also expected to create 3,000 direct Intel jobs providing $405 million in annual payroll. According to official estimates, supporting businesses will also generate 20,000 job vacancies, and contribute $2.8 billion to Ohio’s annual gross state product.
