Ohio State Rapidly Emerging as a Hub for US Semiconductor and Electric Vehicle Industries

Intel to Possibly Establish 8 Foundry Fabs in Ohio Through Four Phases
LG Energy Solution Accelerates Battery Business with Honda and GM in Ohio

J.P. Nosif, Director and CEO of the Ohio Department of Economic Development (center), is speaking at a press conference on the 18th. On the left is Dana Sosier, Deputy Director and Team Leader of the Ohio Department of Economic Development. / Photo by Kim Pyeonghwa

[Asia Economy Reporter Kim Pyeonghwa] Intel's two foundry (semiconductor contract manufacturing) plants being built in Ohio, USA, with an investment of $20 billion, could potentially expand to a total of eight fabs in four phases. In this case, the investment scale could increase to $100 billion. Currently, phase one is underway in Ohio, and additional phases may proceed under the U.S. Chips and Science Act (CSA).

The Ohio Economic Development Agency held a press conference on the morning of the 18th at The Plaza Hotel in Jung-gu, Seoul, to share this information. The Ohio Economic Development Agency is a private organization under the state of Ohio that supports corporate investment and business operations within the region.

At the event, the Ohio Economic Development Agency explained Intel's case as a large-scale private investment in the region. Intel announced in January that it would invest $20 billion to build new foundry plants in Ohio. On the 9th of last month (local time), a groundbreaking ceremony for the new plant was held with U.S. President Joe Biden in attendance.

The Ohio Economic Development Agency explained that Intel made this decision after confirming the economic value of the Ohio region. J.P. Nosip, Director and CEO of the Ohio Economic Development Agency, said, "Intel succeeded in competing with 39 sites across the U.S. to build its semiconductor plant," adding, "Intel chose Ohio because of its skilled workforce, abundant water resources, low energy costs, and well-established supply chain."

Intel will establish a total of two foundry fabs in Ohio. Since the site Intel secured in Ohio is large enough to build eight fabs, additional investments may follow. The Ohio Economic Development Agency proposed a plan to Intel to build eight fabs in four phases, and Intel responded to phase one by establishing these two fabs. Future phases may proceed under the semiconductor support law.

Director Nosip stated, "At this point, as a partner, we want to focus on successfully completing phase one. Decisions on phases two, three, and four have not been made," adding, "Not only the Ohio Economic Development Agency but also the state government has requested the passage of the semiconductor support law. Only then can Intel proceed with future phases."

Meanwhile, the Ohio Economic Development Agency also introduced various corporate cases in Ohio, which is emerging as a U.S. electric vehicle hub. With an annual production of 1.1 million vehicles in Ohio alone, the agency explained that 96% of North American automotive suppliers such as BMW, Toyota, Ford, and General Motors (GM) are located in the region.

As a representative domestic case, LG Energy Solution was cited. On the 12th of this month, LG Energy Solution announced that it would invest a total of $4.4 billion with Japan's Honda to build a battery joint venture plant in Fayette County, Ohio. The two companies plan to start construction next year and aim for mass production by the end of 2025. LG Energy Solution also has a battery joint venture with GM and produced its first prototype at the Ohio plant last month.

Dana Sosier, Deputy Director and Economic Development Team Leader of the Ohio Economic Development Agency, explained, "The facility (LG Energy Solution and Honda's battery joint venture plant) is located where abundant water, natural gas, and electricity can be supplied, and there is a major highway nearby," adding, "We recommend Ohio to Korean companies seeking to enter the U.S. market."

This content was produced with the assistance of AI translation services.