Intel is now saying its chip plants in New Albany will likely be canceled if the company can't find new customers as local officials are voicing their frustrations with the chip making company.
Intel says it may need to stop all work on its Ohio facilities if it doesn't get more customers for its manufacturing division. Intel was originally supposed to start production on the plants this year, bringing an expected 3,000 jobs to the community.
The manufacturer announced last week it would be "slowing" construction on the $28 billion project in western Licking County.
The potential work stoppage is based on a node technology called 14A. The new technology won’t debut until 2027, so Intel will have some time to try and acquire the customers it needs.
Gov. Mike DeWine was among officials last week who expressed hope that Intel was still committed to building in Ohio. DeWine said "Intel has affirmed its commitment to Ohio."
Unlike DeWine and other officials, Licking County Commissioner Tim Bubb doesn't have as rosy of a view on the situation. Bubb said he, other county commissioners and the community are extremely disappointed in Intel.
"I don't mean to say that somehow they deliberately pulled the wool over anyone's eyes, but I think they made promises they couldn't keep. And that's okay if it's someone else, but it isn't someone else. In Licking County's case, it's us and it's Ohio," Bubb said. "This can't be more disappointing."
Bubb said he has seen first hand how work is slowing down. He said contractors working on the project are already finding work elsewhere in the county.
"We feel like the rug has been pulled out just a little bit. If you think about it, there is investment out there. It is a beautiful sight and it's partially complete, but construction is slowing down rapidly," Bubb said.
Bubb said the news doesn't come as a surprise given Intel's recent actions as a company. He said Intel has canceled dividends, announced several layoffs system-wide, canceled other projects and summarily fired their previous CEO.
"All of a sudden, we have two partially completed plants, one where there's some steel going up, and it could be under roof at some point in the next year if construction continues, the other not far along," Bubb said. "And we have the basis for two huge plants in western Licking County, but there's no plans to occupy them or to put the equipment in there to make chips or to hire those people to work there."
Bubb said he's frustrated because of all the money local communities in central Ohio have sunk into workforce development and infrastructure improvements around the site.
In November, the Biden administration said it was releasing $7.865 billion in CHIPS act grant money for Intel projects in New Albany and three other states. That includes $1.5 billion for the New Albany project.
Bubb said he understands why DeWine and others are more optimistic about the plants' future. He expects it's possible for Intel to either sell the plants or partner with another company that will make computer chips.
Intel has struggled to keep up with rivals such as Nvidia Corp.
Bubb said he is optimistic about other projects in Licking County that he said are "setting the world on fire" with new construction. He said that while Intel has slowed down, he is pleased with other major development activity.
"(Licking County) is a destination right now for a lot of companies," Bubb said.
