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Ohio promised Intel $2 billion in tax breaks

by on31 January 2022


Socialism is ok if applied to rich capitalist companies 

While Ohio seems reluctant to spend cash on a decent health, welfare, and education system, it seems to have found more than $2 billion in tax breaks and incentives to Intel to attract its $20 billion chip-making factory to the state.

The state's development director tells them it may be the biggest economic development deal in history.

Intel's hoping it creates a powerful new technology hub in the Midwest, while eventually addressing an ongoing chip shortage, according to the article.

The factory's production isn't expected to come online until 2025, though "The complex could grow much larger and more quickly, Intel executives said, if Congress approves a $52 billion bill that would invest in the chip sector and help ensure more production in the US.

Intel CEO Patrick Gelsinger said the total Ohio investment could top $100 billion over the decade, with six additional factories, making it one of the world's biggest chipmaking sites.

Ohio's offer includes $600 million to help Intel offset the cost of building the factories, which is more expensive than it would be in Asia, said Lydia Mihalik, the state's development director.

The state also will pay $700 million for roadwork and water infrastructure upgrades, including a system that will allow the plant to reuse wastewater. The state Legislature this summer approved a 30-year tax break that will allow Intel to save $650 million.

The state's share will be money well spent because the Intel facility will not only create jobs but make Ohio more attractive to industries such as auto, aviation and defence that rely on chips, Mihalik said.

"These investments will not only ensure that this project is successful here but will also be supporting the region by increasing local infrastructure to support future growth," Mihalik said.

The article also cites the Semiconductor Industry Association's estimate that America's share of the world's chip manufacturing has declined from 37 per cent in 1990 to 12 per cent today.

 

Last modified on 01 February 2022
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