COLUMBUS, Ohio — Ohio's Intel plant is finally receiving its long-awaited $1.5 billion in federal funding, ending the two-year-long stalemate from the company's groundbreaking ceremony. The facility will be operational by 2030, according to the U.S. Department of Commerce.
On Tuesday, the Biden-Harris Administration announced that Intel has been approved to get roughly $8 billion, with $1.5 billion in direct funding for their Central Ohio project.
The company promised the Buckeye State at least $20 billion for a semiconductor manufacturing plant that would create tens of thousands of jobs. Yet thousands of union workers have been waiting to continue construction.
"I know enough about government — that it takes a while," said Mike Knisley with the Ohio State Building and Construction Trades Council.
But not anymore.
Knisley's teams are ready to get to work on a historic investment.
Semiconductors are the chips behind e-commerce, social media, cars, computers and everything that utilizes digital technology, which nowadays is just about everything.
This wouldn't have been possible without the CHIPS Act, which President Joe Biden signed in August 2022. The immediate economic impact was supposed to be major. The plant will create 3,000 longer-term, higher-paying jobs, 7,000 construction jobs and tens of thousands of additional jobs.
"This created a pathway for all Ohio, and not just in Central Ohio, but the supply chain," Knisley said. "We won't have to rely on outside entities such as China to produce these."
Progress on the facility has been stagnant due to a slow rollout of funding from the federal government.
As months went on without CHIPS funding, and as a new administration got closer, tensions rose in Ohio.
RELATED: Where is the CHIPS Act funding for Ohio's Intel plant?
But Knisley is proud to say that the Department of Commerce has awarded Intel up to $7.865 billion.
"I think there was a sense of people being relieved that the money finally came out," he said. "And a sense of excitement that, moving forward, this will create generational opportunities for everybody."
U.S. Secretary of Commerce Gina Raimondo thanked the leadership of Biden and Harris for "enabling Intel to drive one of the most significant semiconductor manufacturing expansions in U.S. history."
“The CHIPS for America program will supercharge American innovation and technology and make our country more secure — and Intel is playing an important role in the revitalization of the U.S. semiconductor industry through its unprecedented investments across Arizona, New Mexico, Ohio, and Oregon,” Raimondo said in a statement.
Gov. Mike DeWine had been pushing for the faster release of this money for months now.
“Today’s announcement that Intel-Ohio is receiving CHIPS Act funding is a much-needed step forward in the important objective of making the most advanced computer chips in America," DeWine and Lt. Gov. Jon Husted said in a statement. "The DeWine-Husted Administration has never wavered in its pledge to bring these chip manufacturing plants to Ohio. The work to build the Silicon Heartland now moves forward with even more certainty, advancing our economic and national security to the benefit of the working people of Ohio and America.”
The CHIPS Act was championed by U.S. Senator Sherrod Brown.
“We passed the CHIPS Act to create thousands of good-paying jobs, strengthen our supply chains, and bring manufacturing of this crucial technology back where it belongs: Ohio," Brown said. "This is a major step forward to ensure that this project reaches its full potential and that Ohio leads the world in producing the technologies of the future.”
Brown is being replaced by Senator-elect Bernie Moreno, who is also cheering on the project.
"Intel's gonna thrive here in Ohio," Moreno told reporters in early November.
But Moreno said the legislation could use some work to make more opportunities for growth. The Department of Commerce requires businesses to comply with its regulations in order to get the money, which is likely why the money was delayed.
"It is way too intrusive on Intel's business," Moreno said. "It's telling them too many things of how to run their company."
Intel is obviously excited about the announcement.
“Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security. Intel is deeply committed to advancing these shared priorities as we further expand our U.S. operations over the next several years,” said Intel CEO Pat Gelsinger.
However, they aren't getting as much money as they discussed with the government previously. Congress had adjusted the appropriations, which led to the Dept. of Commerce adjusting "Intel’s portfolio allocation to account for this change," Intel said.
When it comes to breakdown, Ohio is only getting money for one fabrication facility (fab), despite the fact they are building two. That one facility will receive the full $1.5 billion.
Intel's other plants have been allotted varying amounts, with Arizona getting roughly $4 billion, Oregon with $1.86 billion and New Mexico with $500 million.
Intel told me to ask the Dept. of Commerce why they allocated Ohio the amount they did, especially when they have two growing plants. The department didn't address this question; however, they did comment on the timeline for when the money will be delivered.
“Intel has already met their first milestones, and so we do expect at least a billion dollars of funds to go out later this year to the company,” a senior administration official said.
Despite the lack of money for the second plant, Intel isn't planning to change course. They are still budgeting at least $28 billion to build the facilities.
"Intel is committed to building two leading-edge fabs in Ohio, and we continue to advance both fabs," an Intel spokesperson said. "We will align the start of production at each fab with market demand over the coming years."
An official with the department gave more details on the timeline.
"Our CHIPS for America award is focused on the first of those fabs, and that facility is expected to be operational before the end of decade,” the department official said.
The fab was supposed to be finished by 2025.
Intel told me in Feb. that their goal of starting to create chips by late 2025 isn’t possible anymore.
RELATED: Ohio union leader frustrated as Intel delays $20 billion project
But Knisley says some things are worth the wait.
"It's better to go slow and steady than it is to rush," he said. "You have to have good fiduciary responsibility with taxpayer dollars — the Department of Commerce is doing their fiduciary duty."
Concerns had previously been raised by government officials on each side of the aisle as Intel faced major financial troubles.
Their stock has dropped more than 50% in the last year while the industry has grown more than 120%. After spending 25 years on the Dow Jones Industrial Average, Intel was replaced on the index by Nvidia, a leader in artificial intelligence, on Friday. The company also had mass layoffs in October, cutting 15,000 jobs, slashing its workforce by 15%.
Despite this, Knisley said he trusts them to pull through.
"You just got to buckle up for the ride," he said.
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