Colliers | Columbus
A LOOK BACK ON INTEL: ONE YEAR LATER
Written by: Brooke Ferman
As a Research Analyst, Brooke specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial and Retail groups. She is responsible for executing data reports, maintaining a commercial property database, reporting quarterly trends, performing data analysis and utilizing statistical information to predict future behavior in the market. She also assists the marketing and research director on special projects and corporate initiatives. Keep reading for an overview of the Intel development over the past year.
A year ago, the spotlight was on Columbus as Intel announced it was chosen for its new development project. The $20 billion construction investment will include two semiconductor chip factories in Ohio. Intel has a reputation for creating microprocessors set up in majority of personal computers. “Intel’s microprocessors are supplied and used in computers at several large tech companies, including Dell, HP, and Lenovo. Intel also manufactures graphics chips, flash memory, motherboard chipsets, and other computing devices.” The community was excited to hear Ohio was chosen. This venture plans on bringing 3,000 manufacturing Intel jobs and 7,000 construction jobs.
Eight months later on September 9th, President Biden was in Ohio for the groundbreaking. Governor DeWine stated, “To my fellow Ohioans, this is a historic moment for the Buckeye state. By choosing Ohio, Intel has recognized what we have known all along: there is no better place to raise a family than Ohio. No better place to live, no better place to start or grow a business and no place to provide more opportunities than in the state of Ohio.” As Phase 1 has started, development teams are working to complete the construction around the end of 2023. Phase 2 is projected to start at the beginning of 2024 and be completed in 2025.
This year, Intel will face new changes as the company announced it will be cutting executive and employee pay as a result from the downturn of sales.
Columbus Business First reported that “just days after posting brutal quarterly results, the chipmaker confirmed the move, with reductions reportedly ranging from a 25% cut to CEO Pat Gelsinger’s base pay down to a 5% trim for midlevel employees. Contributions to 401(k) plans were also being reduced and merit raises and quarterly bonuses halted.”
Wall Street Journal received the following statement from Intel. “As we continue to navigate macroeconomic headwinds and work to reduce costs across the company, we’ve made several adjustments to our 2023 employee compensation and rewards programs. These changes are designed to impact our executive population more significantly and will help support the investments and overall workforce needed to accelerate our transformation and achieve our long-term strategy.”