Local leaders celebrate Intel’s $20B Ohio plans

“We are extremely excited to see Intel commit to the state of Ohio,” Ryan Kelly, president and CEO of QQE , said in an email. “We see significant growth for the semiconductor industry over the next decade and love that our home state is embracing this growth. QQE looks forward to supporting Intel and the fast growing semiconductor industry in the future.”

“I think it’s very conceivable,” Erbaugh said Friday just a few hours after Ohio Gov. Mike DeWine confirmed on Twitter that Intel intends to invest $20 billion into dual semiconductor production facilities that are expected to employ about 3,000 people. “So much of our manufacturing in the Dayton region is what we call contract manufacturing.”

Many of these DRMA-member companies have a variety of capabilities, already supplying companies like Intel and others across the nation and across the globe, she said.

Having a company of that size so close by may create similar opportunities, Erbaugh said.

“Our manufacturers are already competing statewide, countrywide and most of them, globally,” she said.

Ohio government counts more than 140 Ohio businesses as Intel suppliers, and the project is expected to bring additional new businesses to Ohio to support the supply chain.

Beth Graves, owner and president of Prime Controls Inc., hailed Friday’s news. Her company’s products use PC boards that require computer chips, and these days she is being told by suppliers that chips have a “52-week lead time” — which is another way for suppliers to say they simply don’t know when chips will be available, she said.

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Prime Controls is a second-generation, family-owned business that designs and makes computer-powered inspection equipment for the can-making industry, as well as the auto industry and customers elsewhere. The company has 16 workers in Kettering and ships its products to 50 countries.

“We could not be more thrilled,” Graves said. “We’re not the only ones who have been experiencing the challenges this year with the supply chain.”

Kershner said this is an example of a company seeking to solve a problem — the dire need for new semiconductor production — and choosing to the solve that problem in the Buckeye State.

“Man, that’s awesome. It is so exciting,” he said.

Dayton and the Miami Valley have suppliers and workers poised to contribute.

“There is going to be significant for Dayton suppliers and partners,” Kershner said. “Dayton already has a highly technical and advanced manufacturing workforce that will realize significant opportunities from this investment.”

“We’re excited to celebrate this,” he added. “As Ohio succeeds, Dayton succeeds.”

Erbaugh said as well that a project of this sort may boost the perception of Ohio in the realm of manufacturing and improve the perception of manufacturing itself. Workers employed directly by Intel will earn an average of $135,000 per year (plus benefits), the state said Friday.

This will certainly involve very clean, high-tech manufacturing, employing an array of production “clean rooms”— areas needed to ensure that chips stay free of impurities through the production process — rooms which cost millions to build.

The Intel facility is expected to create 3,000 permanent jobs in Licking County, the company said, and the state expects an additional 7,000 construction jobs and tens of thousands of additional support jobs.

“There are just all kinds of good things about this,” Erbaugh said.

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Erbaugh’s second reaction, she said, was: “Gulp, does this mean that an already scarce workforce is going to be shifted to that company and away from some of the smaller companies?”

But she added that the “bigger news” Friday is the announcement itself.

The project is expected to add $2.8 billion to Ohio’s annual gross state product, DeWine’s office and JobsOhio said Friday.

“Today’s announcement is monumental news for the state of Ohio,” DeWine said in a statement. “Intel’s new facilities will be transformative for our state, creating thousands of good-paying jobs in Ohio manufacturing strategically vital semiconductors, often called ‘chips.’ Advanced manufacturing, research and development, and talent are part of Ohio’s DNA, and we are proud that chips — which power the future — will be made in Ohio, by Ohioans.”

“We are excited to call Ohio home to Intel’s first new manufacturing site in 40 years,” said Pat Gelsinger, Intel CEO. “Today, we take an important step toward our goal to rebalance global chipmaking capacity and help boost production to meet the surging demand for advanced semiconductors, powering a new generation of innovative products.

Added Gelsinger: “The new factories we’ll build in Ohio are part of our strategy to increase semiconductor R&D and global manufacturing capacity and restore U.S. semi manufacturing leadership. We expect Intel Ohio will become one of the largest semiconductor manufacturing sites in the world over the next decade.”

State leaders are scheduled to say more about the project at 2:30 pm today.