A look at Intel's challenges in building its $20B Ohio chip fabs, set to open in 2025, including finding 7,000 construction workers during a local building boom
Ohio's largest-ever economic development project comes with a big employment challenge: how to find 7,000 construction workers …
Associated PressAndrew Welsh-Huggins
Context & Ripple Effects
When Intel committed $20B to at least two fabs on a 1,000-acre New Albany site in January 2022 — promising a 2025 opening and 3,000 permanent jobs — the binding constraint looked like money and permits. This AP reporting shows the near-term constraint is people: 7,000 construction workers needed on a site racing against a local building boom for the same trades.
Intel's 2025 opening target depends on recruiting 7,000 construction workers into a market where a local building boom is bidding up the same electricians, pipefitters, and heavy-equipment operators — direct schedule and cost pressure on the New Albany project.
Second-order effects
Central Ohio contractors and other regional projects now compete directly with Intel for skilled trades, pushing up local construction wages and making every subsequent US fab announcement inherit a tighter, pricier labor market.
Third-order effects
If the pattern holds, US semiconductor capacity additions are gated by skilled-labor supply rather than announced capital — announced fab timelines stretch out, and the gap between chip commitments and operating fabs widens structurally.
The trend: America's chip-building push is shifting from a capital-commitment race to an execution race, where fab timelines are set by construction labor and government funding cadence rather than headline investment figures.
When asked for more financing details, Intel's CFO David Zinsner cited a nondisclosure agreement while saying: “This is a lot like any other transaction that you see Brookfield making in infrastructure like investments. They expect a certain level of return as a result of that.” …
“Intel Signs $30 Billion Funding Partnership With Brookfield [Asset Management] to Finance Chip-Factory Expansion” ("Intel would fund 51% of the cost of building new chip-making facilities in Chandler, Ariz.") 🤔 https://www.wsj.com/...
Intel expects mid-30s net capital intensity through 2024 before settling down to around 25% by 2026. Intel's gross capital intensity will likely stay above 40% for 2023 and 2024. Capital offsets come from co-investments, customer commitments and government subsidies.
Which is why there should be an immediate accelerated apprenticeship program for high school seniors and young people up to age 30 across Ohio and surrounding states to prepare an expanded workforce. https://twitter.com/...
Intel stock up today (after recently hitting 52-week low) following news of $30 billion investment partnership with Brookfield to expand chip manufacturing plant in Arizona. $INTC $BAM https://www.intel.com/...
interesting quote from Lt. Governor Jon Husted (R-OH): “When you're willing to pay people more to do something, you will find the talent,” he said. https://twitter.com/...
biden-era problems: ohio needs 7000 construction workers for a new intel plant (partially spurred on by the chips and science law biden signed) but theres a shortage cause so many people have been hired over the last two yrs. https://apnews.com/...
This is an interesting move as Intel continues to employ its smart capital strategy. People have debated if Intel should spin out foundries. While this isn't a spin-out it does invite the accountability people suggested as Intel is accountable financially to a third party. https:…
Wondering how @Intel will pay for some of the capex for its fabs and foundries? Here we go. “SCIP”. This type of coinvestment is common in energy and carrier investments. Seems smart to me and aligned with @PGelsinger IDM 2.0 strategy. $INTC https://www.intel.com/...
Intel is trying to ease its gargantuan capital expenditure burden by sharing it with Brookfield Asset Management, which will own 49% of some of Intel's future fabs in Arizona. #INTC stock is up a bit today, but yesterday was a 52-week low, so... it's hard. https://www.intel.com/.…