Intel granted billions from CHIPS Act

The U.S. Department of Commerce awarded $8.5 billion in direct funding to Intel for commercial semiconductor projects under the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act.

The New Albany Intel project is the largest private project in the history of Ohio. The job will be done under a National Construction Agreement and will create over 7,000 union construction jobs for Sheet Metal Workers Local 24 and other building trades unions.

The project is also expected to create about 3,000 jobs within the company and an estimated 10,000 indirect jobs. 

According to the Ohio State Building and Construction Trades Council, Phase I will generate over 45 million work hours for members of the building trades, with the majority of workers being from Ohio unions, like Local 24. 

Tradesmen and tradeswomen are guaranteed industry-standard wages with healthcare, retirement and training benefits, under the NCA. It will also guarantee the inclusion of local, minority-owned subcontractors and the employment of tradespeople of color, tradeswomen and veterans. 

The CHIPS Act was passed in late July 2022 and provides subsidies to increase semiconductor manufacturing, research and development capabilities in the U.S.

Intel has also opted to secure federal loans of up to $11 billion. The company also plans to claim the U.S. Treasury Department Investment Tax Credit (ITC), which is expected to be up to 25 percent of qualified investments of more than $100 billion over five years. 

“The building trades are excited the administration is providing CHIPS money that will ensure work on the Intel project here will stay on schedule and continue long into the future,” said Columbus/Central Ohio Building and Construction Trades Council Executive Secretary-Treasurer Dorsey Hager. “We are committed to our partnership with Intel and Bechtel to train the next generation of workers and give everyone in our community the opportunity to get on the direct path to the middle class.” 

Hager called the CHIPS and Science Act an investment to build the region’s skilled workforce. Last year, the White House named Columbus a Regional Work Hub and C/COBCTC affiliated building trades unions, like Local 24, have been increasing their membership. 

Construction of Phase I is underway and Intel will spend an estimated $20 billion to construct two fabs, an office building and other key infrastructure. Work on Phase I is expected to be completed in late 2026. 

Additional phases of work will increase the total number of fabs constructed to eight and push the total cost to an estimated $100 billion. 

According to the report Intel filed in mid-March, the company has spent $1.5 billion and hired 69 workers through 2023.

Besides CHIPS and Science Act funding, Intel will also receive more than $2 billion in incentives from Ohio and New Albany. 

President Joe Biden announced the CHIPS Act funding on March 20 at Intel’s campus in Chandler, Ariz. 

Intel CEO Pat Gelsinger stressed that the CHIPS and Science Act will once again make America a leader in the semiconductor industry and promised the company will be good stewards. 

“We’re going to put every one of these taxpayer dollars to work and we are committed to delivering the silicon that powers our world while driving the lowest possible environmental footprint,” Gelsinger said. 

Biden called the funding award through the CHIPS Act a landmark deal and a smart investment to create jobs, including union construction jobs.

“Combined, (the Itntel projects in Oregon, New Mexico and Ohio) will create nearly 20,000 construction jobs, many of which will be union jobs,” he said. 

Biden stressed that the investment is a big deal because America currently makes 0 percent of the advanced chips in the world, and now, America will enable advanced semiconductor manufacturing to make a comeback.

The Dept. of Commerce has now awarded CHIPS and Science Act funds to four companies. BAE Systems Electronic Systems, Microchip Technology, Inc., GlobalFoundries and now Intel. 

According to The Columbus Dispatch, the Commerce Department expects money to begin flowing to Intel before the end of the year. 

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