The semiconductor industry is the backbone of modern technology, powering everything from smartphones to cars to advanced medical equipment. Recognizing its strategic importance, the U.S. government enacted the CHIPS and Science Act to bolster domestic semiconductor manufacturing and reduce dependence on foreign suppliers.
This legislation aims to revitalize the U.S. semiconductor industry by providing $52B in subsidies and tax incentives for companies that invest in domestic semiconductor research, development and manufacturing.
Intel’s New Ohio Chip Factory for Completion in Late 2026 and Production 2027
Intel’s decision to invest $20B into a cutting-edge semiconductor manufacturing facility in New Albany, announced in early 2022, highlights the potential of the CHIPS Act to revitalize American manufacturing and reduce reliance on foreign suppliers. The Intel factory’s downstream effects extend far beyond its physical footprint. It not only creates 3,000 high-tech manufacturing jobs and 7,000 construction jobs, but also stimulates Ohio’s supply chain ecosystem.
Currently, Intel collaborates with more than 350 suppliers from 47 Ohio counties for the facility, but additional partnerships will be crucial once production begins in 2027. Big Blue-chip names like Amazon, Facebook and Google have already established a presence in the “Silicon Heartland” by constructing data centers.
The presence of a major semiconductor manufacturer like Intel in Ohio will not only attract businesses and suppliers to the region, diversifying and strengthening the state’s economy; it will also establish the area as a hub for innovation and technological advancement. By serving as a center for research and collaboration, the Intel facility will attract talent and foster the development of new technologies, further driving economic growth and competitiveness in the long term.
The largest investment in Ohio’s history emphasizes Ohio’s growing importance in the sector and its potential to become a major player in semiconductor manufacturing.
As Ohio experiences economic growth, it’s crucial for local organizations to navigate the changing landscape effectively. Schneider Downs offers tailored assurance, tax and advisory services to support growth and success in Columbus and beyond.
To learn more, visit the Schneider Downs blog or email [email protected].
About Schneider Downs Manufacturing Services
Schneider Downs understands the manufacturing industry from a regional, national and international perspective. Our experience in engineering-based cost segregation studies, state and local tax services, including nexus studies, as well as research and development tax credits, provides manufacturers the expertise needed to run their businesses more effectively.
To learn more, visit our Manufacturing Industry Group page.
References:
Biden-Harris Administration Announces Preliminary Terms with Intel to Support Investment in U.S. Semiconductor Technology Leadership and Create Tens of Thousands of Jobs
Intel to Build Ohio Semiconductor Manufacturing Facility
Ohio to Lead Semiconductor Supply Chain Consortium Proposal | Governor Mike DeWine
