President Biden to announce billions for Intel: how it will impact New Albany

NEW ALBANY, Ohio (WCMH) — As Intel continues construction on its Ohio One facility in New Albany, President Joe Biden is set to announce the company has been offered nearly $20 billion in direct funding and loans.

Biden is traveling to Chandler, Arizona, on Wednesday to visit Intel’s Ocotillo campus and announce the Department of Commerce has reached a preliminary agreement to award it with up to $8.5 billion in direct funding and eligibility for $11 billion in loans, which will come from the CHIPS and Science Act. The funding will support the construction and expansion of Intel facilities in Arizona, New Mexico, and Oregon, as well as the Ohio One facility under construction in New Albany.

The package will also help establish a regional economic cluster in New Albany for chipmaking. It’s expected to create nearly 20,000 jobs: with 3,000 manufacturing, 7,000 construction and an estimated 10,000 indirect jobs.

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While the money will assist with the completion of Ohio One, it won’t completely cover it. The total of the announced funds available to Intel adds up to $19.5 billion, which would be spread across Intel facilities, instead of all going toward the New Albany plant. Intel has previously said the Ohio One facility will cost $20 billion.

Intel’s 2023 report for investors showed that it had received $723 million in grants from state governments for Ohio One. The tech company also received $845 million in “advanced manufacturing investment” tax credits tied to the CHIPS Act, though it wasn’t specified how much went to the Ohio plant as opposed to others. Ohio has also given Intel $600 million toward the plant. Even with these funds, Intel seems to be short of the $20 billion needed for the New Albany plant.

Despite this, the announcement is seen as positive news for New Albany’s Silicon Heartland. With rumors swirling about funding being pulled from Intel, a missed launch prediction was confirmed by documents submitted to the state. Originally slated to be completed in 2025, the project is now expected to become operational in 2027 or 2028.

At the groundbreaking for Intel’s Ohio One in 2022, Biden called Intel “the story of a field of dreams in the middle of Ohio where America’s future will be built.”

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