Here’s a look into Knox, Richland counties’ economic opportunities in the Intel supply chain

MOUNT VERNON — Companies in Knox and Richland counties are already contributing to the construction of 2.5-million-square-feet semiconductor factories in New Albany, Ohio.

Intel’s top suppliers in Ohio to date include AEP Ohio, Bechtel Manufacturing and Technology and Linde Engineering. 

Naga Chandrasekaran, executive vice president, chief global operations officer and general manager of Intel Foundry Manufacturing told Ohio employees on Feb. 28 that Intel doesn’t expect to complete construction on Ohio’s two fabrication facilities until 2031 with operations to begin in 2032.

“In no way does this diminish our long-term commitment to Ohio,” Chandrasekaran said in a statement. 

“We have already started hiring Ohioans who are training at our fabs in Arizona, New Mexico and Oregon, and we will continue to scale our hiring as we approach our operational dates. Intel is proud to call Ohio home, and we remain excited about our future here.”

According to reporting from The Columbus Dispatch, Intel has spent nearly $4 billion in Ohio since announcing plans to build the fabs in 2022.

Intel spent $4 billion at 500 supplier companies just in Oregon in 2022, according to the U.S. Department of Commerce.

That’s an average of $4 million per company.

Intel had approximately 8,200 suppliers in more than 85 countries as of 2023, according to its 2023-24 Corporate Responsibility Report.

The semiconductor giant needs a variety of goods and services to produce chips and microprocessors — construction, manufacturing, marketing, software, travel services and product testing are all listed as examples in the corporate report.

An April 2021 third-party economic impact study released by Intel suggested each job at an Intel facility either directly or indirectly supported 13 jobs elsewhere.

What does this mean for Knox County and central Ohio? 

Oregon hosts four different Intel locations, while Ohio will have one. Oregon hosts Intel’s main research and development facilities, while Ohio’s fabs will mainly support chip manufacturing.

Still, the Ohio fabs are expected to create 3,000 Intel jobs and support 7,000 jobs in building trades during the construction process.

Emily Smith, director of site development and community affairs for Intel Ohio One, noted the above map of counties that contain suppliers for Intel Ohio One campus is outdated — the Ohio One campus now has more than 350 suppliers in 48 counties. The map above shows 38 counties.

“Before Intel announced plans to build in Ohio, we had about 150 suppliers in the state,” Smith said. “Since announcing the Ohio One project, we now have more than 350 suppliers.

“Some of our suppliers will be located very close to our campus due to the need for close proximity, but many of the suppliers won’t need to be so close.”

That’s the opportunity Jeff Gottke sees for Knox County.

“I don’t think Knox County will see transistors and silicon wafer companies because those are expensive to build and I’m guessing they have to be very close to the facility in New Albany,” said the president of the Knox County Area Development Foundation.

“I think it’s very possible that we support HVAC parts, duct work or any machine parts that make the semiconductors.”

Gottke noted Knox County has limited shovel-ready sites for new companies, including Fredericktown Industrial Park and Heartland Commerce Park.

“What’s important for companies looking for new space is speed to market, so how quickly they can get up and running,” Gottke said. “They’d want either a spec building or shovel-ready site with utilities. To remain competitive in the manufacturing sphere, we need more shovel-ready sites.”

Ohio semiconductor suppliers also support biotechnology, other industries

Barrett Thomas, senior director of economic development for the Richland Area Chamber, said site development and supply chain buildouts are a long process.

“When you put this in the context of Honda in Marysville, that supply chain took 30 years to build out,” he said. 

“I think the semiconductor supply chain will move faster than the auto supply chain, but it still takes time to aggregate the land, infrastructure, and have it in place to present to a company when you’re talking site development.”

Thomas said he thinks Richland County could support Tier 3 suppliers, or potentially Tier 2.

“For Intel in particular, I would say nothing’s ready to go yet in our area, but the more pieces we have in place, the more opportunity we have there,” he said. 

“That’s why site control is so important, either through public or public-private ownership. Speed, risk and money relates to every site decision when you’re looking at land to build on as a company, so the more you have in place ready to go is how you win long-term.”

Matt Englehart, communications manager for JobsOhio, noted semiconductor suppliers usually support other industries beyond chip manufacturing.

“While central Ohio is well positioned for supply chain growth, there are more semiconductor suppliers outside of central Ohio than in it,” he said. “This is due in part to Ohio’s rich history of manufacturing. 

“Many semiconductor suppliers support other industries, such as biotechnology and healthcare, smart manufacturing, smart mobility, IoT (Internet of Things, logistics) and energy.”

Semiconductor chips require millions of transistors, as well as silicon wafers, metals and a lithographing and etching process.

Intel is actively seeking Ohio suppliers, listing categories of logistics and transportation, human resources, factory metals, marketing, computing and prototype testing on its website.

Fro Sand to Silicon: The Making of a Microchip

“Ohio’s rich industrial history, combined with its forward-looking economic development efforts, positions it as a prime destination for a range of high-tech industries,” said Intel Communications Manager Elly Akopyan.

“Regions like Knox County bring valuable assets that can support industries critical to the semiconductor ecosystem, from glass fabrication to advanced materials and precision manufacturing.”

Sherwood, Oregon — which Knox Pages reporters visited in October 2024 — hosts an 80,000-square-foot DWFritz location that manufactures precision automation systems and a 45,000-square foot space for development firm Lam Research, a Fortune 500 company with a variety of microchip products.

Most of the semiconductor and integrated circuit suppliers in Washington County, Oregon are located in Hillsboro closest to Intel’s four campuses.

Lam Research is headquartered in California and DWFritz in Wilsonville, Oregon. Those companies opened Sherwood locations just in the past three years in the city’s new TualatinSherwood Corporate Park.

Olympus Controls recently opened a 70,000-square-foot facility in Sherwood, where it builds industrial robotics, motion control, CNC automation systems and more.

According to the corporate responsibility report, about 45% of Intel’s suppliers were located in North, Central and South Americas as of 2023. Asia and Pacific Islands suppliers made up about 30% of the supply chain.