Intel holds groundbreaking ceremony for new Ohio-based semiconductor complex

Jimmy2x

Posts: 142   +11
Staff
Why it matters: United States President Joe Biden and Intel CEO Pat Gelsinger were on hand for Friday's much anticipated groundbreaking ceremony in New Albany, Ohio. The event marked the kickoff of Intel's state-of-the-art semiconductor facilities project following the recently enacted Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act. The 1,000-acre site has enough real estate to support up to eight fabrication plants.

Officials postponed the original groundbreaking scheduled for July due to funding delays related to the CHIPS and Science Act. The event marks a formal milestone in Intel's fabrication roadmap and is a significant step toward the company's ability to compete with existing semiconductor manufacturers worldwide. Passed in August, the CHIPS Act will provide $52.7 billion in incentives and tax relief for US-based companies engaged in semiconductor R&D, manufacturing, and workforce development.

The new state-of-the-art facilities will drive Intel's technological advancements, increase overall semiconductor availability for U.S. markets, and decrease the general reliance on external manufacturers such as TSMC and Samsung. Currently, Asian semiconductor manufacturing operations produce upwards of 80 percent of the world's chips and other semiconductor-related components.

According to Intel's initial plans, the new $20 billion fabrication campus will employ more than 3,000 skilled workers earning an average salary of $135,000 per year. Gelsinger said those numbers could increase over time. The Intel boss previously stated that the Act's passage could result in Intel's investment exceeding $100 billion. These numbers do not include the more than 7,000 skilled workers required to build the actual facilities.

Biden and Gelsinger weren't the only honored guests on hand at the event. Finn Ashby, an 8-year-old elementary school student from the local area, was spotted by company representatives making robots and participating in other children's activities at an Intel-sponsored tent at the local Hartford Fair earlier this year. Impressed with his enthusiasm, Intel representatives reached out to Finn's family and invited him to participate in the groundbreaking ceremony. Gelsinger introduced the young attendee, joking that the young technology enthusiast would someday be the CEO's replacement.

The new fabrication facilities will produce semiconductors and other components for automotive technology, computers, and mobile devices. Intel senior VP Randhir Thakur told The Columbus Dispatch that the facility would be "the most advanced fab in the country and the planet." Thakur currently leads Intel's new foundry services line of business, which will receive direct support from the new Ohio-based fabrication facilities.

Intel plans to complete initial construction at the Ohio location and begin semiconductor manufacturing operations sometime in 2025. The new facilities will undoubtedly attract other jobs and businesses directly related to the semiconductor manufacturing and distribution industries.

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umbala

Posts: 786   +1,562
Can someone explain to me why it's alright for the government to give tens of billions of dollars in "incentives" to these ultra rich companies? They make record profits, they have huge amounts of cash on hand, yet they need massive handouts funded by taxpayers. Why?

This is from a quick Google search: "Intel cash on hand for the quarter ending June 30, 2022 was $27.044B, a 8.8% increase year-over-year. Intel cash on hand for 2021 was $28.413B, a 18.91% increase from 2020."

They have $27 billion CASH on hand. Not borrowed money, not assets, but CASH. And they had the nerve to put the whole thing on hold because the government wasn't quick enough to give them free money.
 

umbala

Posts: 786   +1,562
California must be getting a bit nervous right now. China, too. And they should be.
How you phrased your comment is very telling. You seem to put California and China on the same slate, as if California wasn't even part of the USA. Hmm, I wonder why.
 

lripplinger

Posts: 382   +173
Can someone explain to me why it's alright for the government to give tens of billions of dollars in "incentives" to these ultra rich companies? They make record profits, they have huge amounts of cash on hand, yet they need massive handouts funded by taxpayers. Why?

This is from a quick Google search: "Intel cash on hand for the quarter ending June 30, 2022 was $27.044B, a 8.8% increase year-over-year. Intel cash on hand for 2021 was $28.413B, a 18.91% increase from 2020."

They have $27 billion CASH on hand. Not borrowed money, not assets, but CASH. And they had the nerve to put the whole thing on hold because the government wasn't quick enough to give them free money.

Yeah, I was thinking the same thing. Why does government always put us in more debt to subsidize giant corporations.
 
Can someone explain to me why it's alright for the government to give tens of billions of dollars in "incentives" to these ultra rich companies? They make record profits, they have huge amounts of cash on hand, yet they need massive handouts funded by taxpayers. Why?

This is from a quick Google search: "Intel cash on hand for the quarter ending June 30, 2022 was $27.044B, a 8.8% increase year-over-year. Intel cash on hand for 2021 was $28.413B, a 18.91% increase from 2020."

They have $27 billion CASH on hand. Not borrowed money, not assets, but CASH. And they had the nerve to put the whole thing on hold because the government wasn't quick enough to give them free money.

It's about absorbing some of the risk. If investors know that the US Government has Intel's back, they are much more likely to invest. As the article states: "The Intel boss previously stated that the Act's passage could result in Intel's investment exceeding $100 billion" That's 4x their cash on hand, and is an extremely risky move to make alone. Without that backing, Intel or any other chip manufacturer aren't likely to make such a huge investment in the US, when they could either sit on their hands and still make plenty of money, or build elsewhere for cheaper. It's a good play by the US government.
 
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Uncle Al

Posts: 9,354   +8,553
Having that complex built, equipped, and staffed in just three years? sounds like a BIG dream there. Now if you add two years for development, fine tuning, etc. before the first usable chips are produced I think that's a bit more reasonable ....
 

RudyBob

Posts: 828   +839
How you phrased your comment is very telling. You seem to put California and China on the same slate, as if California wasn't even part of the USA. Hmm, I wonder why.
California has gone it's own way for a long time and as far as I am concerned the comment was correctly phrased
 

RudyBob

Posts: 828   +839
Having that complex built, equipped, and staffed in just three years? sounds like a BIG dream there. Now if you add two years for development, fine tuning, etc. before the first usable chips are produced I think that's a bit more reasonable ....

Three years is reasonable after all this is private not government run
 

sorten

Posts: 166   +274
California must be getting a bit nervous right now. China, too. And they should be.
Why would California care? Nobody expects or wants land and water hungry manufacturing operations to be located in California. It wouldn't make financial sense. On top of those issues, they'd have to pay a lot more for the engineers.
 

defaultluser

Posts: 511   +390
Why would California care? Nobody expects or wants land and water hungry manufacturing operations to be located in California. It wouldn't make financial sense. On top of those issues, they'd have to pay a lot more for the engineers.

as opposed to convincing all the folks running the place to move into a racist hole?

its not like chemical engineering is a very important program in Ohio;top engineering schools at Columbus

The Department of Food, Agricultural and Biological Engineering ranked 10th
. The Department of Materials Science and Engineering retained its rank of 12th
nuclear engineering (15)
industrial/manufacturing engineering (16)
aerospace engineering (19)
computer engineering (22).

chemical eng isn't even o the list (so no local graduates to populate your new fab,unless you pat a premium to import them)!

By-comparison, a state like Texas has a much higher ranked engineering school system (UT Austin: 6th in engineering nationally, and A&M is ranked 10th), so there's a good reason why folks keep building new fabs in the state!
 
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