Intel ceremonially breaks ground on $100 billion project

President Biden stresses use of union construction workers

It was a grandiose event to ceremonially commemorate the start of the largest construction project in the history of Ohio.

On the morning of Sept. 9, hundreds of guests – made up of local, county, state and federal leaders, along with business leaders and educational leaders – stood on the ground where the first semiconductor plant or fab will be constructed and listened to a number of speakers, including Intel CEO Pat Gelsinger, Ohio Gov. Mike DeWine and President Joe Biden.

Initially scheduled to take place on July 22, the ceremony was postponed to September due to concerns regarding the inability of the federal legislature to pass the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act. In late July, Congress passed the CHIPS Act as part of House Resolution 4346 and Biden signed it into law on Aug. 9.

A month later, with site work already underway, dignitaries gathered to formally celebrate the beginning of the $20 billion project to build two Intel fabs, an office building and other key infrastructure. Additional phases of work will increase the total number of fabs constructed to eight and push the total cost to an estimated $100 billion.

Phase I of the project is expected to create at least 7,000 jobs for members of the building trades.

Columbus/Central Ohio Building and Construction Trades Council representatives at the Intel groundbreaking ceremony.

For the first time in 40 years, Intel will build a new U.S. manufacturing site and it will be located in central Ohio.

“The Columbus/Central Ohio Building and Construction Trades Council and our affiliated unions are excited about the opportunity to be on the front line to create Ohio’s ‘Silicon Heartland,’” Dorsey Hager, C/COBCTC Secretary-Treasurer said.

For Ohio State Building and Construction Trades Council Secretary-Treasurer Mike Knisley, the event kicked off what he called a transformational project.

“This project will be transformational – not only for Central Ohio, but for all the other affiliated regional building trades councils in Ohio,” he said. “This marks the start of a generational investment for our members, their children and their grandchildren.”

During his speech, Biden thanked the members of Congress who voted for the CHIPS Act.

He then discussed the importance of this project for members of the middle class, as it will provide good-paying union construction jobs.

President Joe Biden called the National Construction Agreement a critical piece of hte Intel project during the Intel groundbreaking ceremony.

“Here’s the critical piece, Intel is using a Project Labor Agreement for this investment,” said Biden and then explained the benefits of such agreements.

While similar to a PLA, the project is actually governed under a National Construction Agreement.

The President called the NCA a big deal and linked it to the Executive Order he signed in February, which mandated most federal construction projects over $35 million be built under PLAs and noted semiconductor companies who use CHIPS Act funding are required to pay Davis-Bacon Prevailing Wage to all construction workers who build these facilitates.

He pointed to his record as president of leading the way to onshoring manufacturing and creating jobs.

“Folks, since I took office, our economy has created nearly 10 million new jobs, more than 668,000 manufacturing jobs — proof of point that ‘Made in Ohio’ and ‘Made in America’ is no longer just a slogan,” said Biden. “It’s happening; it’s a reality today and it’s just beginning.”

The event began with The Ohio State University Marching Band leading the guests from a large, air-conditioned tent to an outdoor stage area.

Keyvan Esfarjani, Intel Executive Vice President, Chief Global Operations Officer and General Manager of Manufacturing, Supply Chain and Operations, was the first dignitary to speak and discussed the construction project.

“Initially, I thought it would take about a year and a half to get the necessary permits to begin construction,” he said and then thanked all who played a role in the expedited permit process.

Esfarjani also thanked the organization who represents the men and women who will build the site.

“Thank you to the Ohio State Building Trades and North America’s Building Trades Unions,” he said. “Together, our teams are working side by side to make Ohio the ‘Silicon Heartland.’”

He reminded the attendees that building a megasite is similar to building a small city that requires a significant infrastructure investment.

“The two fabs under construction behind me will require concrete – enough to build the two largest skyscrapers in the world and enough structural steel to build eight Eifel Towers,” he added.

In the weeks and months that follow, union construction crews will begin the transition from site prep to excavation work to construct a 60-foot-deep concrete sub-foundation, which will protect the fabs from vibration. Following this work, steel will begin to rise.

Ohio Lt. Gov. Jon Husted told the audience the groundbreaking was only the start of the collaboration to get the workforce not only Intel, but the 129 suppliers who are expected to open up operations within the state.

At the Intel Groundbreaking Ceremony, Ohio Gov. Mike DeWine told dignataries that Ohio will not let Intel down.

Husted noted the state is ready for the challenge of the construction project and stressed the importance of meeting the deadlines.

“Ohio’s construction industry must build this project on time and on budget,” he said.

Jim Evers, Intel Ohio’s Vice President and Factory Manager, recently moved from Arizona to Ohio.

He stated Intel will be a great neighbor and will show up in the community and care.

Evers also provided an insight into what the construction timeline might look like.

“It took me 28 years to build four fabs in Arizona,” he said. “I hope to move faster and deliver beyond that here in Ohio. So, Ohio, let’s build.”

Just before the groundbreaking and an intermission, Gelsinger addressed the audience. He told them he was more excited to be in Ohio for this event than the initial announcement of the project in January.

“The rust belt is dead, and the ‘Silicon Heartland’ begins,” he exclaimed.

“We want to build stuff and the welcome we received since we began these discussions in Ohio is nothing short of tremendous,” he added.

The groundbreaking was such a monunmentous event, that it was paused for an intermission. The break concluded when the Presidential motorcade arrived.

The second act featured a slew of federal elected officials and Ohio’s governor.

“We have learned over the last few years that there are essential items that we must make here in the United States,” said DeWine.

He noted that Intel selected Ohio over 39 other sites, and in doing so, Intel leaders put their faith in Ohio and in its people.

“We will not let you down,” DeWine said.

U.S. Sen. Sherrod Brown speaks at the Intel groundbreaking ceremony.

“They have placed their faith in our women and men who are building these fabs right now,” he said. “….to the men and women out there today and who will be here for years building, we say thank you. Thank you for building that dream.”

Besides DeWine, U.S. Sen. Rob Portman (R-Ohio) and Sen. Brown (D-Ohio), along with Rep. Joyce Beatty (D-Columbus), also spoke.

Prior to introducing the president, Gelsinger addressed the guests for a final time.

“We are the only chip marker who does it all here in America,” he said. “We put all our chips on the table.”

Gelsinger described the future fabs as the epicenter of the leading technological curve, producing the most advanced chips in the entire world and stated the most advanced trades on this plant are required to build this facility.

Construction on the first two fabs is expected to be completed in 2025.