Including new development, job creation, and potential for universities to thrive, while simultaneously boosting domestic chip production.
The magnitude of the plant's influence on Cincinnati, Ohio, and the country as a whole is significant. In January 2022, Intel announced that its latest location would be at the New Albany International Business Park, situated 20 miles east of Columbus, where two chip factories, or fabs, are set to be completed by 2025. The newly engineered land has the potential to accommodate eight fabs, costing up to $100 billion in the next decade. As Keyvan Esfarjani, Intel's Senior Vice President of Manufacturing, Supply Chain, and Operations, stated, "Ohio is an ideal location for Intel's U.S. expansion because of its access to top talent, robust existing infrastructure, and long history as a manufacturing powerhouse" (Intel.com). Besides its superb location, Ohio boasts immense talent that has prompted Intel to invest $100 million and collaborate with Ohio universities in various initiatives.
Intel's primary objective is to revitalize the semiconductor manufacturing status worldwide. This development's capacity to restore production to the United States and fortify the global industry is a top priority. The City of New Albany has been highly supportive of this development and continues to work with locals each day to update them on community and traffic changes. On September 9th, 2022, a groundbreaking event was held, encouraging many leaders from different realms to be a part of this exciting addition to our state.
As the largest private-sector investment in Ohio, Intel is poised to create 10,000 jobs, with 7,000 in construction and 3,000 in plant jobs. These opportunities could impact Ohio's 4.2% unemployment rate as of December 2022. While central Ohio will be more directly affected, the city of Cincinnati will also experience significant benefits over time. Companies and partners are setting up shop across Ohio to match the growth. Already, companies like "Air Products, Applied Materials, LAM Research, and Ultra Clean Technology have indicated plans to establish a physical presence in the region to support the buildout of the site, with more companies expected in the future." In 2018, Forbes listed both Cincinnati and Columbus in the top ten cities in America for startups.
As demand for chip manufacturing continues to rise, the need for these flat semiconductors, which are present in everyday items such as smartphones, cars, and refrigerators, is growing. This technology is crucial for production and must be produced at a record demand. Presently, 12% of chips are made in America, and the shift coming soon provides less risk for supply chain shortages, which we have seen change recently. Knowing that this is Ohio's future, there is hope for future development and relocation that could positively impact the commercial real estate world.