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Intel starts next phase of $20B Ohio manufacturing project

Daniel Nenni

Admin
Staff member
Crews recently poured 1,500 cubic yards of concrete at the massive semiconductor facility in Licking County.

ntel starts next phase of Ohio manufacturing project.jpg


Crews officially poured 1,500 cubic yards of concrete this month at Intel’s Ohio One manufacturing site, according to a company tweet on May 18.

The milestone marks the completion of the first phase of the project and the beginning of the next phase of construction for the $20 billion semiconductor facility in Licking County, located east of Columbus, Ohio. The Intel project spans nearly 1,000 acres, can eventually contain up to eight semiconductor factories and ranks as the largest private-sector investment in Ohio history.

Recruiting, retention and training in construction

Intel, a Santa Clara, California-based semiconductor chip manufacturer, selected Rhode Island-based Gilbane Building Co. to manage the initial phase of the project, which broke ground in September. The general contractor for the next phase has not yet been announced.

Despite a 68% drop in manufacturing starts in April, manufacturing projects remain strong year over year, largely because of massive sites like Intel’s facility in Licking County.

Private sector companies have announced nearly $140 billion in investments in semiconductor production, supply chains and research and development to be made over the next decade, according to a White House press release. Intel CEO Pat Gelsinger said during the groundbreaking ceremony in September that the $52.7 billion federal CHIPS Act played a critical role in allowing construction to move forward on the massive project.

The facility is Intel’s largest construction project to date, said Jackie Sturm, Intel’s corporate vice president of global supply chain operations. Intel officials expect production to start in 2025.

 
Looking at this Intel Ohio site picture, it is relatively very small in scale for a leading edge fab. Unless it's merely a support/auxiliary facility. But if it's a support/auxiliary facility then why Intel didn't start the main fab building construction first? The main fab building construction and equipment installation is a complicated, time consuming, and expensive process. Start the main fab building early can ensure the project schedule and spending follow the master plan.
 
Funny day. The equity market says Nvidia will destroy Intel's DC and AI business, while at the same time the company is spending billions in AZ and OH for fabs. Thoughts?
 
Funny day. The equity market says Nvidia will destroy Intel's DC and AI business, while at the same time the company is spending billions in AZ and OH for fabs. Thoughts?

In today's semiconductor industry, most successful companies are either on the service side (such as TSMC, UMC, GF) or on the product side (like AMD, Nvidia, Qualcomm, Mediatek, Apple, etc), but not in both service AND product business.

Intel is working hard to be the leader on both. It's very very hard.
 
So did Intel receive money from the Chips act for this? I didnt think anything was approved yet.

When will the Ohio fabs ship product?
 
No one has received CHIPS Act funding yet. It's a five-step process, and the government is on step one.


I'd be surprised if any company receives CHIPS Act funds by the end of the year. 1H24 seems more likely at this juncture.
I agree, I am just interested that projects are repeatedly stated as being funded by Chips act. Unless there was some handshake preapproval (seems illegal) or plans to pay for work that is already completed (doesn't seem like incentive), I am wondering how it is supposedly impacting these projects now (other than creating a positive ecosystem in the US)

I am still predicting it will be very difficult to trace where most of the chips money actually went and what difference was made when this is all done. but we shall see
 
Looking at this Intel Ohio site picture, it is relatively very small in scale for a leading edge fab. Unless it's merely a support/auxiliary facility. But if it's a support/auxiliary facility then why Intel didn't start the main fab building construction first? The main fab building construction and equipment installation is a complicated, time consuming, and expensive process. Start the main fab building early can ensure the project schedule and spending follow the master plan.
It could be ensuring the project schedule is not Intel's No.1 priority that Intel might still wait the money from CHIPS Act to determine the scale of fabs and production schedule.
So Intel just keep little efforts to save money while they still can claim it's "on track".
 
I agree, I am just interested that projects are repeatedly stated as being funded by Chips act. Unless there was some handshake preapproval (seems illegal) or plans to pay for work that is already completed (doesn't seem like incentive), I am wondering how it is supposedly impacting these projects now (other than creating a positive ecosystem in the US)

I am still predicting it will be very difficult to trace where most of the chips money actually went and what difference was made when this is all done. but we shall see

I believe it was put into the Chips Act that existing projects that are under construction can still apply and receive subsidies.
 
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