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Ohio lured Intel’s chip plant with USD2B incentive package

COLUMBUS, OHIO (AP) – Ohio offered Intel Corp incentives worth roughly USD2 billion to secure a new USD20 billion chipmaking factory that the company said will help alleviate a global shortage and create a new technology hub in the Midwest.

The state’s development director said on Friday that the combination of tax breaks and incentives are likely the largest ever offered by Ohio for what state leaders say is the biggest economic development deal in its history.

Santa Clara, California-based Intel, the world’s second biggest chipmaker, announced a week ago it had selected a site outside Columbus for two new chip manufacturing facilities. The complex could grow much larger and more quickly, Intel executives said, if Congress approves a USD52 billion bill that would invest in the chip sector and help ensure more production in the United States (US).

Intel CEO Patrick Gelsinger said the total Ohio investment could top USD100 billion over the decade, with six additional factories, making it one of the world’s biggest chipmaking sites.

Shortages of computer chips, which are mostly made in Asia and used in everything from handheld video games to automobiles, have become a growing concern and were exposed in the US and Europe during the pandemic.

A rendering provided by Intel Corporation shows early plans for two new Intel processor factories in Licking County, Ohio. PHOTO: AP
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