Ohio vies for semiconductor fab construction

13 January 2022

Ohio is the latest state to be in contention as a potential location for a major semiconductor manufacturing fab with the investment in the tens of billions of dollars.

According to a report from The Columbus Dispatch, the construction would be one of the largest economic development jobs in the history of the state.

The news comes after it was revealed that a massive chip plant is also being considered in the Raleigh, North Carolina area that is being pursued by multiple chipmakers. That project is slated to be worth somewhere in the $30 billion range but depends on Congress passing the U.S. Innovation and Competition Act.

Already passed by the Senate, the bill includes funding for Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, a bill that would help to increase U.S. domestic semiconductor manufacturing. The bill is pending approval in the U.S. House of Representatives and would provide $52 billion for semiconductor research, design and manufacturing.

The rumors of the fab being built in Ohio come as the city of New Albany plans to annex 3,190 acres from Jersey Township in western Licking County for an expansion of the New Albany International Business Park.

Calls to develop domestic chip manufacturing stem from the supply chain issues created because of COVID-19. Having most of the semiconductor manufacturing concentrated in a few locations — namely Taiwan and Korea — could lead to future supply chain fluctuations due to geopolitical conflict or future pandemics.

Chip firms and the U.S. government are looking to build facilities in the U.S. as the world fights a continuing shortage in semiconductors and U.S. plants would be less susceptible to risks posed by global sources such as chips from China and Taiwan.

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