Central Ohio officials not worried about longer Intel construction timeline (Story in text due to aggressive adblocking)

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Central Ohio officials not worried about longer Intel construction timeline (Story in text due to aggressive adblocking) (www.bizjournals.com)

Central Ohio officials say they're not worried that Intel Corp. won't hit the "aggressive" target to open its New Albany semiconductor fabrication complex in 2025.

Several officials contacted by Columbus Business First reiterated they were assured of Intel's commitment to the region.

"We stay the course," Columbus Partnership CEO Kenny McDonald said in an interview. "We made a commitment. We've got a great partner in Intel.

"We know there's going to be schedule changes; there's going to be changes to markets; there's going to be ups and downs throughout this path," McDonald said. "We're extremely used to that, even with much smaller projects."

Licking County Commissioner Tim Bubb added he was not surprised that the Intel project was delayed.

“We always thought it was over-optimistic to say 2025,” Bubb said in an interview.

Both county officials and developers around Central Ohio, watching the construction progress closely, believe 2026 or even 2027 is a more realistic completion date, said Bubb, immediate past president of the three-member board.

In any case, the county could use more time to complete roads and other needed infrastructure for the project and surrounding development of what had been farmland.

“It’s a very complicated project. We’re not surprised, we’re not upset about it,” he said. “We’re glad it’s in Licking County. It’s a game-changer.”

Intel's Ohio progress Ohio One will take more of the three- to five-year construction range typical for such projects, the California chipmaker confirmed Thursday following a report from the Wall Street Journal. Since site prep started in early 2022, 2025 would would be the short end of the range, a target Intel now calls aggressive.

Intel remains committed to the project and already has hired 100 of the eventual 3,000 workers for the two fabs, a spokeswoman said, while thousands of construction workers will be on site later this year.

"Intel has been a strong community partner for the city of New Albany," said a statement from the city. "The city of New Albany will continue to fulfill its commitments of completing related infrastructure, and we look forward to our continued partnership with Intel to bring silicon chip manufacturing to Ohio."

Everything you need to know about Intel's New Albany plant

Intel was up-front about the time range has already spent billions on the 1,000-acre site, private statewide economic development organization JobsOhio said in a statement.

"Ohio construction workers and Intel have their full Ohio grit on display as the company navigates sustained pressure from economic forces," JobsOhio CEO J.P. Nauseef said in the statement. "JobsOhio and our partners continue working side-by-side with Intel to attract talent that will run the world’s most sophisticated chip manufacturing facility after operations begin.”

What public funding is Intel getting? JobsOhio awarded the project a $125 million grant for the land purchase and $25 million grant for workforce development in 2022.

The Ohio Department of Development built in a time cushion in the $600 million onshoring grants it sent to Intel in fall, $300 million for each fab. The agreement reached last June calls for construction to be done by the end of 2028.

"Such delays can happen with projects of this size and complexity," Dan Tierney, press secretary for Gov. Mike DeWine, said in an email.

Here are the subsidies Intel's New Albany plant has received to date

"They're doing one of the more complicated things you can do, and that's build an advanced fabrication facility," McDonald said. "There may be spurts where they want to go faster."

Intel started site prep in July 2022, just six months after its announcement, which was earlier than expected.

Bechtel Corp. and Gilbane Building Co. are leading construction for the $20 billion first phase of what could become a $100 billion complex.

Meanwhile, Intel and economic development groups are "full steam ahead" on workforce development and other partnerships, McDonald said. He talked to Intel officials at a summit Thursday at the Columbus Metropolitan Library on increasing supplier diversity in the construction industry.

Industry players react Semi, the global trade organization for the electronics supply chain, has 30 member companies in Ohio. Last spring it co-hosted Semiconductor Day at Ohio State University to interest students in the field in advance of Intel opening, according to its website.

The organization does not comment on the operations of individual members, a spokesman said via email.

"We can confirm that given their multibillion-dollar costs and complexity, semiconductor fabs regularly take multiple years to complete, and schedule changes are not unusual," he said.

Four publicly traded Intel suppliers announced planned expansions in the state at the same time as Intel's January 2022 announcement, but have not provided any specifics.

"Ohio is a massive project and delays are inevitable – however, we are in very close contact with the Ohio Intel team and are adjusting our schedule to align with them," a spokeswoman for Ultra Clean Holdings Inc., said via email. "There are no changes to the scope of the project, just the timing."

A preferred Intel supplier, California-based Ultra Clean develops subsystems, components and parts, and ultra-high purity cleaning and analytical services. The company said in an April 2022 blog post that it needs operations near fabs like Ohio's, but has not released details.

Representatives for the other three companies did not immediately respond to requests for comment.

Nearby developments on track Meanwhile, development is booming around the Licking County site to prepare for suppliers, workforce housing and commerce serving the fabs.

Developer VanTrust is building New Albany Tech Park, which has already attracted two potential Intel suppliers in Rinchem Co. and DSV. Richem, an Albuquerque-based chemical and gas distributor, is constructing a $50 million chemical warehouse on a 29-acre parcel located just a few miles from Intel's future campus. DSV, a Danish transportation and logistics company, began construction on its 1.2-million-square-foot facility at the tech park in October.

Rinchem and DSV did not immediately respond to requests for comment, but Andy Weeks, executive vice president of VanTrust Real Estate's Ohio Valley region, said development of the more than 500-acre tech park will continue despite the Intel delay.

"We are focused on executing our own projects that we have underway at the New Albany Tech Park and continue to have very positive ongoing conversations with a wide variety of suppliers, so from our perspective nothing has changed," Weeks said in an emailed statement to Business First.

Closer to the Intel site is New Albany Co.'s proposed Johnstown Gateway Planned District. If the project comes to fruition, more than 400 acres at the entrance to Intel's campus would be developed into a mixed-use complex with industrial, residential and commercial buildings. The massive project is the latest in a string of Intel-related efforts made by New Albany Co., which was instrumental in acquiring, annexing and selling the land to the tech giant for its semiconductor project.

New Albany Co. President and CEO Bill Ebbing did not express concern about how the Intel construction timeline would affect the developer's efforts to support the project.

“It is not unusual for construction projects of this magnitude to have timeline adjustments," Ebbing said in a prepared statement. "The progress that has been made to date in the construction of Ohio One is impressive and Intel has been an extraordinary community partner since announcing its intention to build here in early 2022.”

Central Ohio officials say they're not worried that Intel Corp. won't hit the "aggressive" target to open its New Albany semiconductor fabrication complex in 2025. Several officials contacted by Columbus Business First reiterated they were assured of Intel's commitment to the region. "We stay the course," Columbus Partnership CEO Kenny McDonald said in an interview. "We made a commitment. We've got a great partner in Intel. "We know there's going to be schedule changes; there's going to be changes to markets; there's going to be ups and downs throughout this path," McDonald said. "We're extremely used to that, even with much smaller projects." Licking County Commissioner Tim Bubb added he was not surprised that the Intel project was delayed. “We always thought it was over-optimistic to say 2025,” Bubb said in an interview. Both county officials and developers around Central Ohio, watching the construction progress closely, believe 2026 or even 2027 is a more realistic completion date, said Bubb, immediate past president of the three-member board. In any case, the county could use more time to complete roads and other needed infrastructure for the project and surrounding development of what had been farmland. “It’s a very complicated project. We’re not surprised, we’re not upset about it,” he said. “We’re glad it’s in Licking County. It’s a game-changer.” Intel's Ohio progress Ohio One will take more of the three- to five-year construction range typical for such projects, the California chipmaker confirmed Thursday following a report from the Wall Street Journal. Since site prep started in early 2022, 2025 would would be the short end of the range, a target Intel now calls aggressive. Intel remains committed to the project and already has hired 100 of the eventual 3,000 workers for the two fabs, a spokeswoman said, while thousands of construction workers will be on site later this year. "Intel has been a strong community partner for the city of New Albany," said a statement from the city. "The city of New Albany will continue to fulfill its commitments of completing related infrastructure, and we look forward to our continued partnership with Intel to bring silicon chip manufacturing to Ohio." Everything you need to know about Intel's New Albany plant Intel was up-front about the time range has already spent billions on the 1,000-acre site, private statewide economic development organization JobsOhio said in a statement. "Ohio construction workers and Intel have their full Ohio grit on display as the company navigates sustained pressure from economic forces," JobsOhio CEO J.P. Nauseef said in the statement. "JobsOhio and our partners continue working side-by-side with Intel to attract talent that will run the world’s most sophisticated chip manufacturing facility after operations begin.” What public funding is Intel getting? JobsOhio awarded the project a $125 million grant for the land purchase and $25 million grant for workforce development in 2022. The Ohio Department of Development built in a time cushion in the $600 million onshoring grants it sent to Intel in fall, $300 million for each fab. The agreement reached last June calls for construction to be done by the end of 2028. "Such delays can happen with projects of this size and complexity," Dan Tierney, press secretary for Gov. Mike DeWine, said in an email. Here are the subsidies Intel's New Albany plant has received to date "They're doing one of the more complicated things you can do, and that's build an advanced fabrication facility," McDonald said. "There may be spurts where they want to go faster." Intel started site prep in July 2022, just six months after its announcement, which was earlier than expected. Bechtel Corp. and Gilbane Building Co. are leading construction for the $20 billion first phase of what could become a $100 billion complex. Meanwhile, Intel and economic development groups are "full steam ahead" on workforce development and other partnerships, McDonald said. He talked to Intel officials at a summit Thursday at the Columbus Metropolitan Library on increasing supplier diversity in the construction industry. Industry players react Semi, the global trade organization for the electronics supply chain, has 30 member companies in Ohio. Last spring it co-hosted Semiconductor Day at Ohio State University to interest students in the field in advance of Intel opening, according to its website. The organization does not comment on the operations of individual members, a spokesman said via email. "We can confirm that given their multibillion-dollar costs and complexity, semiconductor fabs regularly take multiple years to complete, and schedule changes are not unusual," he said. Four publicly traded Intel suppliers announced planned expansions in the state at the same time as Intel's January 2022 announcement, but have not provided any specifics. "Ohio is a massive project and delays are inevitable – however, we are in very close contact with the Ohio Intel team and are adjusting our schedule to align with them," a spokeswoman for Ultra Clean Holdings Inc., said via email. "There are no changes to the scope of the project, just the timing." A preferred Intel supplier, California-based Ultra Clean develops subsystems, components and parts, and ultra-high purity cleaning and analytical services. The company said in an April 2022 blog post that it needs operations near fabs like Ohio's, but has not released details. Representatives for the other three companies did not immediately respond to requests for comment. Nearby developments on track Meanwhile, development is booming around the Licking County site to prepare for suppliers, workforce housing and commerce serving the fabs. Developer VanTrust is building New Albany Tech Park, which has already attracted two potential Intel suppliers in Rinchem Co. and DSV. Richem, an Albuquerque-based chemical and gas distributor, is constructing a $50 million chemical warehouse on a 29-acre parcel located just a few miles from Intel's future campus. DSV, a Danish transportation and logistics company, began construction on its 1.2-million-square-foot facility at the tech park in October. Rinchem and DSV did not immediately respond to requests for comment, but Andy Weeks, executive vice president of VanTrust Real Estate's Ohio Valley region, said development of the more than 500-acre tech park will continue despite the Intel delay. "We are focused on executing our own projects that we have underway at the New Albany Tech Park and continue to have very positive ongoing conversations with a wide variety of suppliers, so from our perspective nothing has changed," Weeks said in an emailed statement to Business First. Closer to the Intel site is New Albany Co.'s proposed Johnstown Gateway Planned District. If the project comes to fruition, more than 400 acres at the entrance to Intel's campus would be developed into a mixed-use complex with industrial, residential and commercial buildings. The massive project is the latest in a string of Intel-related efforts made by New Albany Co., which was instrumental in acquiring, annexing and selling the land to the tech giant for its semiconductor project. New Albany Co. President and CEO Bill Ebbing did not express concern about how the Intel construction timeline would affect the developer's efforts to support the project. “It is not unusual for construction projects of this magnitude to have timeline adjustments," Ebbing said in a prepared statement. "The progress that has been made to date in the construction of Ohio One is impressive and Intel has been an extraordinary community partner since announcing its intention to build here in early 2022.”

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