(The Center Square) – State officials hope Intel CEO Pat Gelsinger’s retirement will not impact the chip manufacturer’s $20 billion plan for central Ohio.
While Gelsinger officially retired after 40 years with the company and stepped down from the board of directors, several national media outlets reported he was forced out by the board as the chipmaker has struggled in the past several months.
In early August, reports said Intel would scrap 15% of its workforce but declined to provide any public details.
Ohio leaders believe the change won’t impact Intel’s ongoing development of its massive manufacturing facility in central Ohio, which could lead to 3,000 direct jobs and thousands of other related jobs.
Ground was broken in September 2022 for Intel’s massive $20 billion chip manufacturing site.
“Billions of dollars have been invested at the Ohio One site in Licking County, including multiple loads of equipment coming north from the Ohio River to the site,” Ohio Gov. Mike DeWine and Lt. Gov. Jon Husted said in a joint statement. “Now that the CHIPS Act funding has been announced, we anticipate the project will continue to move ahead quickly. We expect to talk with the Interim CEOs of Intel soon so we can offer whatever continued support they need as we work to build the most advanced microchip fabrication facility on earth which will stand as the cornerstone of the Silicon Heartland.”
In its first progress report required to Ohio leaders, Intel said in March it had spent $1.5 billion and committed another $3 billion to the project in the Columbus suburb of New Albany. The project includes $2 billion in incentives for the two planned microchip manufacturing facilities in Licking County, including taxpayer-funded grants and tax incentives.
Intel’s contract with Ohio says it must meet its job-creation goals by 2028.
Gelsinger’s retirement came less than a week after Intel and the federal government reached a deal to release nearly $8 billion in CHIPS Act funding that directly impacts commercial semiconductor manufacturing and advanced manufacturing projects in Ohio, Arizona, New Mexico and Oregon.
Overall, the California-based company says its planned U.S. investments, including those not supported by CHIPS, will lead to more than 10,000 company jobs, 20,000 construction jobs and more than 50,000 indirect jobs with suppliers and supporting industries.
Intel named David Zinsner and Michelle Johnston Holthaus as interim CEOs while the board searches for a new leader.
