Special to 1812Blockhouse

Ohio Governor Mike DeWine and Lt. Governor Jon Husted have announced that the state is partnering with Intel, JobsOhio, and the Ohio Grants Alliance to formalize a semiconductor supply chain consortium in Ohio’s Silicon Heartland.

The creation of the Silicon Heartland Supplier Consortium will better position Ohio to:

  • Become one of two new semiconductor clusters in the United States.
  • Help current and prospective Ohio suppliers compete for new federal grant funding for semiconductor materials and manufacturing equipment.

“Ohio is committed to ensuring the success of the Silicon Heartland,” said Governor DeWine. “Bringing together industry partners to onshore this critical industry is key to strengthening our national security, spurring future innovation, and making our economy more resilient.” 

Since the announcement of Intel’s two new microchip fabrication facilities in Licking County, the state has worked to create a thriving ecosystem for Ohio’s growing chip industry. Strong coordination has now been underway for nearly two years that includes the state’s leading education institutions, government partners, JobsOhio, and the private sector, including the Ohio Grants Alliance, which is led by Ohio’s leading business organizations. Today’s consortium announcement formalizes those strong partnerships.

In February, the U.S. Department of Commerce announced plans to fund two semiconductor clusters through the CHIPS and Science Act that will include “a robust supplier ecosystem, R&D facilities to continuously innovate new process technologies, and specialized infrastructure.” Hailed by President Biden as “the ground on which America’s future will be built,” Ohio’s Silicon Heartland stands out as a logical choice for one of the two clusters, and the creation of the Silicon Heartland Supplier Consortium will contribute to Ohio’s position as a leading contender for these federal funds.

“When we were working to attract Intel to establish its semiconductor fab facility in Ohio, we knew that most of the jobs would be created from the supply chain that followed,” said Lt. Governor Husted. “The establishment of this semiconductor consortium can play an important role in establishing Ohio as the Silicon Heartland.”

“JobsOhio and Ohio are committed to a successful and thriving Silicon Heartland, from government leaders to our business community and our leading academic institutions we have all united around the semiconductor industry,” said JobsOhio President and CEO J.P. Nauseef. “By formalizing this consortium, we build on the already strong ecosystem that includes the Midwest Microelectronics Consortium, which was recently selected as a hub within the highly sought-after Microelectronics Commons Program through the Department of Defense and CHIPS Act.”

Intel has agreed to serve as the anchor institution in the consortium to support existing suppliers and attract other key suppliers to Ohio.

“As Intel moves forward with our multi-billion investment in Ohio, we are excited to anchor the new Silicon Heartland consortium,” said Jim Evers, Intel Vice President and Ohio Site Manager. “We look forward to supporting the efforts of semiconductor suppliers looking to expand operations and join us in the Silicon Heartland. This consortium will accelerate the formation of the Ohio semiconductor cluster and will help ensure the long-term growth and success of the semiconductor industry in the Buckeye State.” The creation of the Silicon Heartland Supplier Consortium will also support the opportunity for Ohio suppliers to receive CHIPS and Science Act funding for business expansion and advanced operations.  The U.S. Department of Commerce’s CHIPS for America program will begin accepting supplier concept plans for projects under $300 million in December and will prioritize proposals that are part of a consortium that promotes a semiconductor manufacturing ecosystem. This funding opportunity is in addition to a request from Intel for CHIPS and Science Act dollars to support the forthcoming semiconductor manufacturing facilities in Ohio that are expected to create more than 3,000 direct jobs, 7,000 construction jobs, and tens of thousands of secondary jobs.

Since Intel announced its selection of Ohio for its two semiconductor manufacturing facilities in January of 2022, Intel has grown its Ohio supplier footprint from approximately 150 suppliers to more than 300 current suppliers that are located in every region in Ohio.  Additionally, Ohio is in active discussions with more than 30 out-of-state semiconductor suppliers that are considering investing in Ohio to support Intel’s operations. Ohio also led the nation in passing semiconductor-specific legislation at the state level to encourage businesses in this sector to stay in or relocate to Ohio. 

Current Intel suppliers include entities in Richland, Huron, and Knox Counties, as this graphic reveals.

“Through the work of the Ohio Grants Alliance, we know that our state is more competitive when we work together and collaborate.  The CHIPS Small-Scale Supplier program is another opportunity to work as one team to put Ohio in the best position for success,” said Pat Tiberi, President and CEO of the Ohio Business Roundtable, which runs the Ohio Grants Alliance initiative. 

Source: Office of Governor DeWine

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