US State of Ohio is seeking to offer large incentives to Intel over its chip factory project. The state government will offer 2 billion US Dollars in incentives to bring in the company’s 20 billion US Dollar manufacturing plans.
According to a Cleveland report, the American chipmaking giant will receive 2 billion US Dollars in grants, infrastructure spending, and tax credits. These benefits were pledged by Ohio Department of Development Director Lydia Mihalik last week. In other words, this deal would be the largest economic incentive package in Ohio history. Furthermore, the aforementioned sum does not include the state’s economic development non profit, and millions more in local government money.
As per Mihalik, these pricey incentives are worth the cost, as Intel has been planning on setting up two computer chip production factories would potentially create thousands of jobs. It would even boost Ohio’s gross state product by an estimated 2.8 billion US Dollars per year. The director further added that Team Blue is possibly looking to invest up to 100 billion US Dollars in its Ohio operations, which also makes it one of the largest semiconductor factory plans.
Mihalik said that “When you look at what we’re giving Intel and compare it to what we’re getting in return, some may wonder if it’s worth it. And the answer is yes” Out of the 2 billion US Dollars sum, 1.3 billion will be through direct cash incentives. This includes a 600 million US Dollars “onshoring” grant. On the other hand, the state also agreed to provide 691 million US Dollars to improve infrastructure, such as 300 million US Dollars for a new water reclamation facility, 290 million US Dollars for roadwork, and around 101 million US Dollars for other water and wastewater systems as well.
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