Dispatch: Greater Columbus believed to be in running for massive computer chip factory

EHS 2001

EHS 2001

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Ohio is believed to be in the running for what would be its biggest economic development prize of all time: a major computer chip-making operation with a potential total investment of tens of billions of dollars.

State and local officials along with those from JobsOhio have officially declined to comment, but rumors have been rampant for months of a massive economic development project potentially coming to the region that could include a computer-chip factory.
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www.dispatch.com

Massive computer chip factory eyeing Columbus area

Greater Columbus is believed to be in the running for a massive computer chip factory that could be the state's biggest economic development project.
www.dispatch.com www.dispatch.com
 
 
Reminds me of the Amazon HQ2 project. They open it up and get everyone thinking they have a chance but then go with the big coastal locations because that is where the folks that work in the tech industry want to live. That being said this may be different in that these are primarily manufacturing jobs and they need a lot of land to spread out on plus the tax incentives that blue states tend to not like to cough up could give Ohio and upper hand. I didn't see a mention of Texas in any of the articles but if I was looking at states to place this thing they check off a lot of boxes and an area outside of Austin would be a perfect location.
 
Auggie said:
Reminds me of the Amazon HQ2 project. They open it up and get everyone thinking they have a chance but then go with the big coastal locations because that is where the folks that work in the tech industry want to live. That being said this may be different in that these are primarily manufacturing jobs and they need a lot of land to spread out on plus the tax incentives that blue states tend to not like to cough up could give Ohio and upper hand. I didn't see a mention of Texas in any of the articles but if I was looking at states to place this thing they check off a lot of boxes and an area outside of Austin would be a perfect location.
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If those making the final decisions here want red state economic stability and a lower cost of living putting pressure upon the "wage needs" of employees, I'd have to imagine that Ohio looks FAR better than any prospective coastal state. Given the timing here, I'd say that scenario is fairly likely.

I just hope it doesn't mean Dementia Joe and Xi have an undisclosed deal on Taiwan already, for Joe's severance package from China, Inc...
 
cabezadecaballo said:
If those making the final decisions here want red state economic stability and a lower cost of living putting pressure upon the "wage needs" of employees, I'd have to imagine that Ohio looks FAR better than any prospective coastal state. Given the timing here, I'd say that scenario is fairly likely.

I just hope it doesn't mean Dementia Joe and Xi have an undisclosed deal on Taiwan already, for Joe's severance package from China, Inc...
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I'd like to imagine these tech companies have realized the importance of a local supply chain as the chip shortage has drastically impacted auto manufacturing... However, time will tell.

Ohio makes a lot of sense if logic is the deciding factor.
 
Ohio may actually have a shot thanks to inexpensive land compared to other states due to the need to expand. My brother used to work at an IBM semiconductor fab location in upstate New York. He said that as semiconductor manufacturers move from one generation of chips to a new one, it's often more cost effective to build an entirely new facility than retrofitting and updating existing buildings and equipment.
 
That's a big-asz chunk of land to add to that business park. Hope it doesn't interfere with Les Wexner's view from his house.
 
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I would imagine taxes would figure into the selection.

taxfoundation.org

State Corporate Income Tax Rates and Brackets for 2023

New Jersey levies the highest top statutory corporate tax rate at 11.5 percent, followed by Minnesota (9.8 percent) and Illinois (9.50 percent). Alaska and Pennsylvania levy top statutory corporate tax rates of 9.40 percent and 8.99 percent, respectively.
taxfoundation.org taxfoundation.org

"Nevada, Ohio, Texas, and Washington impose gross receipts taxes instead of corporate income taxes. Gross receipts taxes are generally thought to be more economically harmful than corporate income taxes."
 
Altough I hate to see the loss of productive farmland this may be a huge windfall for Ohio. They are comparing this to what Honda did for Ohio. I have no idea if this will result in satallite suppliers, or not. However, there is already an Intel preferred quality supplier just down the street from me in Grove City.
 
Details are coming out in the media now. https://time.com/6140476/intel-building-factory-ohio/

As part of an effort to regain its position as a leading maker of semiconductors amidst a global chip shortage, Intel is committing $20 billion to build a manufacturing mega-site in New Albany, on the outskirts of Columbus, Ohio, the company exclusively confirmed to TIME.

The chip maker says it will build at least two semiconductor fabrication plants, or fabs, on the 1,000-acre site, where Intel will research, develop, and manufacture its most cutting-edge computer chips, employing at least 3,000 people. Construction will begin this year and the plant should be operational by 2025, the company said.

Intel’s announcement is the largest private-sector investment in Ohio history and a bright spot in what has been a dismal few decades for manufacturing in Ohio and the Midwest. Big employers like General Motors laid off thousands as factory jobs relocated to the U.S. South and overseas. But as automation drives efficiency in factories, creating technical, rather than assembly-line jobs, Ohio is trying to mount a manufacturing comeback.

“Our expectation is that this becomes the largest silicon manufacturing location on the planet,” Intel CEO Pat Gelsinger told TIME; the company has the option to eventually expand to 2,000 acres and up to eight fabs. “We helped to establish the Silicon Valley,” he said. “Now we’re going to do the Silicon Heartland.”
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gcfqn said:
Altough I hate to see the loss of productive farmland this may be a huge windfall for Ohio. They are comparing this to what Honda did for Ohio. I have no idea if this will result in satallite suppliers, or not. However, there is already an Intel preferred quality supplier just down the street from me in Grove City.
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The largest construction project in the country is the new Shell Refinery outside of Pittsburgh. It is about 95% complete at the moment. Construction began in 2016. At peak, they had over 6,000 construction workers and the plant will employ roughly 800 people. The project cost $6 billion.

This project is obviously $20 billion and will eventually employ roughly the same amount of construction workers and will employ 3,000 full time employees. You will also see all kinds of secondary businesses pop up. This is incredible. The CBus metro area has been growing for years obviously but will explode even further with this.

There are two similar plants being built in Arizona. The U.S. and large companies realized we are far too dependent upon China and there is a very large need to build these plants in America. We are also starting to see huge investment in domestic mining for precious metals.

www.cnbc.com

Why Intel and TSMC are building water-dependent chip factories in one of the driest U.S. states

Intel and TSMC are quickly trying to build new factories as the global chip crisis continues to wreak havoc on a plethora of industries.
www.cnbc.com www.cnbc.com
 
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irish_buffalo said:
The largest construction project in the country is the new Shell Refinery outside of Pittsburgh. It is about 95% complete at the moment. Construction began in 2016. At peak, they had over 6,000 construction workers and the plant will employ roughly 800 people. The project cost $6 billion.

This project is obviously $20 billion and will eventually employ roughly the same amount of construction workers and will employ 3,000 full time employees. You will also see all kinds of secondary businesses pop up. This is incredible. The CBus metro area has been growing for years obviously but will explode even further with this.

There are two similar plants being built in Arizona. The U.S. and large companies realized we are far too dependent upon China and there is a very large need to build these plants in America. We are also starting to see huge investment in domestic mining for precious metals.

www.cnbc.com

Why Intel and TSMC are building water-dependent chip factories in one of the driest U.S. states

Intel and TSMC are quickly trying to build new factories as the global chip crisis continues to wreak havoc on a plethora of industries.
www.cnbc.com www.cnbc.com
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I also hear that pharmaceuticals will be returning state side as part of a global change away from China.
 
Yeah this is huge news for greater Columbus and Licking County. Any of those farmers that did not sell their land to Les Wexner in the 1990's are going to be very rich soon. Good for them. Home values in New Albany, Granville and Newark will skyrocket too, good for those people.

Sounds like thousands of construction jobs for the next 3-4 years, then thousands of high tech manufacturing jobs after that. Great news. But where do the workers come from?
 
wolves82 said:
Yeah this is huge news for greater Columbus and Licking County. Any of those farmers that did not sell their land to Les Wexner in the 1990's are going to be very rich soon. Good for them. Home values in New Albany, Granville and Newark will skyrocket too, good for those people.

Sounds like thousands of construction jobs for the next 3-4 years, then thousands of high tech manufacturing jobs after that. Great news. But where do the workers come from?
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There will be a lot of move in’s for employee’s.
 
irish_buffalo said:
The largest construction project in the country is the new Shell Refinery outside of Pittsburgh. It is about 95% complete at the moment. Construction began in 2016. At peak, they had over 6,000 construction workers and the plant will employ roughly 800 people. The project cost $6 billion.

This project is obviously $20 billion and will eventually employ roughly the same amount of construction workers and will employ 3,000 full time employees. You will also see all kinds of secondary businesses pop up. This is incredible. The CBus metro area has been growing for years obviously but will explode even further with this.

There are two similar plants being built in Arizona. The U.S. and large companies realized we are far too dependent upon China and there is a very large need to build these plants in America. We are also starting to see huge investment in domestic mining for precious metals.

www.cnbc.com

Why Intel and TSMC are building water-dependent chip factories in one of the driest U.S. states

Intel and TSMC are quickly trying to build new factories as the global chip crisis continues to wreak havoc on a plethora of industries.
www.cnbc.com www.cnbc.com
Click to expand...
I don't think it can be over stated just how big this is on so many fronts.
 
My son is a senior in college right now, in the computer field, and is beyond excited about this news. Massive news for the area. Intel is also investing in area colleges to help develop future talent.
 
This is a great deal for Columbus and Ohio but most importantly Licking County. The western towns will explode with growth and New England like Granville with great schools and Denison University will become a magnet for the MGMT team relocating from silicone valley. Even depressed Newark as the county seat will see residual growth from all added $s coming in to the County. The next thing that will happen is an expansion of the airport which will bring even more jobs to the area. Finally Ohio State‘s already solid engineering program will get a boost in grants and funding to provide talent and intellectual property for the project.

On the downside traffic will become a nightmare and typical Columbus homogenized retail will bloom even more in the area. There are also some environmental issues with the manufacturing process and I believe Intel is nonunion which means that labor folks will probably make a public showing of trying to organize the shop which is always a distraction. But overall a great project for the area.
 
Gardens35 said:
Youngstown is in the running for a stale potato chip factory.
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They’ve already got a ready-to-occupy building—the infamous Chill-Can factory that appears will join the blimp factory and Pentagon Accounting Center as Youngstown-area projects that created lots of false promise but no actual result
 
coldshoulder said:
They’ve already got a ready-to-occupy building—the infamous Chill-Can factory that appears will join the blimp factory and Pentagon Accounting Center as Youngstown-area projects that created lots of false promise but no actual result
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And the INDOOR NASCAR racetrack.
 
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