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Intel, Ohio Finalize Details On $600 Million Grant For New Albany Project

Intel, Ohio finalize details on $600 million grant for New Albany project

Intel, Ohio finalize details on $600 million grant for New Albany project

Intel and the state announced on Friday that they have finalized the details over a $600 million grant that the state is giving the semiconductor company to help finance the two factories it is building in New Albany. The grant is part of the more than $2 billion in incentives the state has previously said it is providing for the $20 billion project, the state’s biggest economic development project . The state is called the $600 million a reshoring grant meant to bring production of the tiny devices back to the U.S. that power everything from cellphones to cars to military equipment. The industry has said the cost of building the plants in the U.S. is 20%-30% higher than in Asia. As part of the grant agreement, $300 million is available for the construction of each factory, according to the Ohio Department of Development. Funds will be available for two years after construction begins on each facility, which must be completed by Dec. 31, 2028. Construction at the site has been underway for more than a year with Intel saying the factories should be finished in 2025. “Companies like Intel, from one coast to the next, are choosing to invest in Ohio because of our strategic location, willing workforce, and positive business climate,” Ohio Gov. Mike DeWine said in a statement. “I’m proud that we were able to partner with Intel to make such a transformative investment in our state to make Ohio the new Silicon Heartland.” Intel welcomed the news. “Intel is grateful for our partnerships with the Ohio government, Licking County, City of New Albany, and the local community as we continue to build an Intel future in the Silicon Heartland,” the company said. “Intel is proud to be making progress in Ohio to expand our U.S. leading-edge manufacturing footprint and advanced chipmaking capabilities, which will employ thousands of Ohioans and meet the demands of our evolving economy.” Beyond the $600 million grant, the state is providing $700 for infrastructure improvements in the region and $650 million over 30 years in income tax incentives based on the number of workers Intel hires. On top of the state’s incentives, JobsOhio, the state’s economic development arm, kicked in $150 million in economic development and workforce grants with most of the money used to buy the nearly 1,000 acres where the plants are being built. The city of New Albany has promised a 30-year, 100% property tax abatement on the buildings that Intel constructs in the city’s business park. Intel also stands to collect billions of dollars in federal incentives. This project is expected to create 3,000 jobs and 7,000 construction jobs in construction, and result in an annual payroll of $405 million. @BizMarkWilliams

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Daisie Hobson

Daisie Hobson is a Director at the Reshoring Institute and an engineer with many years of experience in manufacturing and project management.

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