The Biden-Harris administration announced Tuesday it's awarding Intel with $7.8 billion in CHIPS Act funding, part of which will be going toward Ohio's New Albany Intel plant that's currently being constructed. 

What You Need To Know

  • Ohio is among the four states receiving the funding

  • Ohio's Intel plant has faced multiple setbacks since it came to fruition in 2022

  • Part of the New Albany plant isn't expected to be completed until 2030

Ohio is among the four states receiving the funding, including Arizona, New Mexico and Oregon.

Ohio's Intel plant has faced multiple setbacks since it came to fruition in 2022. During that time, officials said it was set to be completed in 2025 and was expected to create 3,000 jobs. Now, part of the plant isn't expected to be completed until 2030, and the Commerce Department said it's expected to create 1,500 jobs. Intel cited previously that delays came about a slowing demand for semiconductors, as well as the slow rollout of CHIPS Act funding.

“Today’s announcement that Intel-Ohio is receiving CHIPS Act funding is a much-needed step forward in the important objective of making the most advanced computer chips in America," Gov. Mike DeWine and Lt. Gov. Jon Husted released in a joint statement. "The DeWine-Husted Administration has never wavered in its pledge to bring these chip manufacturing plants to Ohio. The work to build the Silicon Heartland now moves forward with even more certainty, advancing our economic and national security to the benefit of the working people of Ohio and America.”

Prior to the announcement, the $7.8 billion was once $8.5 billion, but the Biden-Harris administration said Monday it has been reduced by $3 billion to provide computer chips to the military.

Two years ago, President Biden hailed Intel as a job creator with its plans to open a new plant near Columbus, Ohio. The president praised the company for plans to “build a workforce of the future” for the $20 billion project. Intel said it's expected to add $2.8 billion to Ohio’s annual GDP.

The Biden administration helped shepherd the legislation following pandemic-era concerns that the loss of access to chips made in Asia could plunge the U.S. economy into recession. When pushing for the investment, lawmakers expressed concern about efforts by China to control Taiwan, which accounts for more than 90% of advanced computer chip production.

In August, the administration pledged to provide up to $6.6 billion so that a Taiwanese semiconductor giant could expand the facilities it is already building in Arizona and better ensure that the most advanced microchips are produced domestically for the first time. The Commerce Department said the funding for Taiwan Semiconductor Manufacturing Co. meant the company could expand on its existing plans for two facilities in Phoenix and add a third, newly announced production hub.

The Associated Press contributed to this story.