Gerry Palmers Tech 08.23.2022 00:Aug AM EDT

Intel Faces Labor Shortage in Building Ambitious $20-Billion Facility in Ohio

As Intel constructs the "largest siicon manufacturing plant in the planet" in Ohio needing approximately 7,000 workers to build it, a labor shortage in the U.S. construction industry would make it difficult for the chipmaker to recruit the needed manpower for its ambitious $20-billion project.

A resulting competition to hire workers might even slow down the pace for home construction in the area, which is essential to support the expected Intel workforce that will be based in the locality.

Intel announced the 1,000-acre Ohio facility last January and is on schedule to begin construction in later this year. Once completed, the Intel Ohio site will comprise two fabrication plants that will need at least 3,000 workers. Intel plans to pour in $100 billion into the Ohio facility, thus expanding the site to 2,000 acres, and construct a total of eight fabrication plants, not two. Actual processor production is seen to start in 2025.

Intel's Ohio project may not need all 7,000 workers on the site simultaneously. This number could even be just a fraction of the manpower needed to build the sprawling workareas that contain Intel's factories. These include a 500-acre business park allotted for Intel's suppliers.

Signed CHIPS Act Speeds Up Construction Work

Construction work is also seen to speed up now that U.S. President Joe Biden has signed the CHIPS and Science Act, providing chipmakers like Intel $52 billion in funding. In June, Intel delayed its groundbreaking ceremony for the new chip plant in an attempt to push U.S. Congress into passing the legislation. During this time, Intel noted that the "scope and pace" of its Ohio project hinge on the funds the company receives from the CHIPS Act.

Intel's project could encounter hurdles due to the current situation the U.S. construction industry is facing. The Associated Builders and Contractors (ABC), a group that represents non-union-associated construction workers said the industry will need to draw 650,000 workers to meet the rising domestic demand for labor. In July, the National Roofing Contractors Association noted a 20.3 percent rise in construction material prices from May to June, compared to the same period in 2021, indicating a nationwide construction supply shortage that has aggravated the situation.

Ohio 'Silicon Heartland' is Next California Silicon Valley

This Intel silicon complex could even evolve into an Ohio version of California's Silicon Valley, many have suggested. Some have described it as a "Silicon Heartland."

This is definitely a massive investment for Intel, which has been struggling to regain its dominance it once heralded. The company has since altered its outlook on the processor industry, with increased focus on manufacturing, supplying chips for competitors, and even partnering with rivals in developing its own processors.

The Ohio facility is the company's first manufacturing site under construction in four decades.

In addition to its investment on facilities, Intel also plans to allot $100 million on education, which it aims "to help develop and attract a pipeline of skilled talent from within the region" as it promises around 3,000 jobs in Intel, 7,000 construction jobs, and opportunities for 140 Ohio companies to become Intel suppliers. The average annual salary in the facilities will be $135,000, the company has indicated.