What’s New: Intel Corporation has selected a diverse Ohio-based team led by Gilbane Building Company, with partners McDaniel’s Construction Corp., Northstar Contracting Inc. and GTSA Construction Consulting, to manage the early excavation work for its two new leading-edge chip factories in Ohio. The factories, known in the industry as fabs, will help boost chip production to meet the surging demand for advanced semiconductors powering a new generation of innovative products from Intel and serving the needs of foundry customers as part of the company’s IDM 2.0 strategy.
“Gilbane is honored to partner with Intel on this transformative project in central Ohio. Intel’s investment in Ohio is significant and will drive sustained economic growth for generations to come. This monumental project continues our strong partnership with the City of New Albany, The New Albany Company, One Columbus and JobsOhio, and is a tremendous opportunity for Ohio trade partners and local workforce. We look forward to helping to advance innovation, drive economic inclusion and support the local community as we embark on this exciting plan.”
Why It Matters: The selection of Gilbane and partners marks the first of Intel’s hiring of construction suppliers for an anticipated 7,000 construction jobs over the course of the build. The project will also generate tens of thousands of additional indirect and support jobs, including contracted positions, electricians and engineers, and jobs in restaurants, healthcare, housing, entertainment and other businesses. For example, in Arizona, where Intel has operated high-volume manufacturing for more than four decades, Intel depends on a local network of more than 1,000 businesses to directly supply its operations. In January, several of Intel’s top suppliers announced they would make investments in Ohio to support Intel’s planned operations.
What the Companies’ Roles are: Gilbane will manage the team’s work to prepare the site for the construction of Intel’s planned factories and drive economic inclusion to provide sustainable opportunities for diverse firms throughout the project. Local partners, including McDaniel’s Construction (MBE), Northstar Contracting (MBE/EDGE/VBE/SBE/DBE) and GTSA Construction Consulting, will provide staff augmentation and consulting services for Phase 1.
Gilbane has been providing construction management services in Ohio since 1957. The family-owned company is committed to leaving a lasting positive impact on the local economy, workforce and community where it delivers projects. Building on Intel’s commitment to diversity and inclusion, Gilbane has identified significant project goals to maximize diverse participation in all project phases. For diverse business enterprises, the project is targeting 20% diverse business enterprises and 50% State of Ohio residency. For workforce inclusion, the project is targeting 10% participation for minority, female and veteran workforce and 60% State of Ohio residency. Gilbane has launched a coordinated outreach program to achieve these business and workforce goals.
“MCCI is pleased to be included on the enabling team for the monumental Intel project,” said Dan Moncrief III, chairman and CEO, McDaniel's Construction. “Since our inception over 37 years ago, we have strived to be a leader in our market sector. We believe that the past hard work and sacrifices have put us in a position to be an integral team member for this project. This opportunity should provide us the exposure to allow us to continue our growth pattern for the foreseeable future.”
Intel’s Supplier Diversity & Inclusion vision values the spirit of innovation and competitive advantage afforded through diverse communities. One of Intel’s 2030 RISE corporate responsibility goals is to reach $2 billion in annual spending with diverse suppliers. Realizing full diversity and inclusion across Intel’s supply chain globally is critical to delivering world-changing technology that improves the life of every person on the planet.
What’s Next: Additional disclosure of subcontractors is expected in the coming weeks and months. The two fabs — representing an initial investment of more than $20 billion — will be located on a “mega-site” spanning nearly 1,000 acres in Licking County, Ohio, on land recently incorporated by the City of New Albany. The site can accommodate a total of eight chip factories and support operations and ecosystem partners. Construction on the fabs is expected to start in 2022. Chip production is expected to come online in 2025, when the fabs will deliver chips using the industry’s most advanced transistor technologies.
This project will create transformational change for Ohio and throughout the Midwest, serving as a catalyst for other investments upstream and downstream, similar to how other areas with Intel manufacturing facilities have evolved over time.
More Context: Intel Announces Next US Manufacturing Site: Ohio (Video) | Intel Adds Ohio as Next US Manufacturing Site (Video) | Intel in the Community (Video) | Intel in Ohio (Intel.com) | Intel Invests in Ohio (Press Kit)