Statements on Job Creation Related to the CHIPS Act and Intel's New Albany Project




The CHIPS and Science Act (signed into law on August 9, 2022) provides substantial federal incentives to enhance U.S. semiconductor production, emphasizing domestic job growth. Intel's semiconductor manufacturing facilities in New Albany, Ohio, represent a cornerstone of this initiative, with the company securing up to $7.86 billion in direct funding (finalized in November 2024) as part of a broader $19.5 billion package including loans and tax credits. This funding was predicated on commitments to create thousands of high-tech manufacturing and construction jobs. However, as of July 2025, Intel has faced significant delays, multiple rounds of layoffs (totaling over 36,000 globally since 2024), and accusations of misleading job certifications to the government. These issues have fueled claims that initial statements were fraudulent or overstated to obtain subsidies, particularly amid project setbacks pushing the first fab's opening to 2030 and ongoing financial losses. No direct link to Microsoft exists in Intel's CHIPS certifications, though both operate in New Albany's "Silicon Heartland" ecosystem.Below is an outline of key statements on job creation, drawn from official announcements, speeches, and funding documents. These were certified in CHIPS applications, where Intel provided projections to justify grants under requirements for workforce development and economic impact.Key Statements on Job CreationJob figures were prominently featured in public events and certifications, focusing on direct Intel roles, temporary construction positions, and ecosystem-wide indirect jobs. Here's a summarized table:
Date
Speaker/Source
Statement on Jobs
Context/Details
January 21, 2022 (Project Announcement)
Intel CEO Pat Gelsinger & Ohio Gov. Mike DeWine
Up to 3,000 permanent manufacturing jobs; 7,000 construction jobs; tens of thousands of indirect jobs across suppliers. Initial $20 billion investment for two fabs, expandable to eight.
Pre-CHIPS Act; positioned as a "Silicon Heartland" hub. Intel emphasized U.S. job priority in certifications to state and federal bodies.
September 9, 2022 (Groundbreaking)
President Joe Biden
"3,000 permanent jobs... 7,000 construction jobs... over 50,000 [indirect] — the vast majority don't require a college degree." Tied to CHIPS Act's goal of revitalizing American manufacturing.
Biden's speech highlighted national security; production targeted for 2025. Certified estimates submitted to Commerce Dept.
August 23, 2023 (CHIPS Support Letter)
Ohio Gov. Mike DeWine & Lt. Gov. Jon Husted
Reaffirmed 3,000 high-tech jobs, 7,000 construction, 10,000+ indirect.
Urged federal support for Intel's application; part of state incentives ($600 million from Ohio).
March 20, 2024 (Preliminary CHIPS Award)
U.S. Dept. of Commerce & Intel
10,000 manufacturing jobs and 20,000 construction jobs across U.S. sites (including New Albany's two fabs). New Albany: 3,000 Intel jobs, 7,000 construction.
Non-binding; total investment $28+ billion. Delays noted, with production shifted to 2026-2027.
November 26, 2024 (Final CHIPS Contract)
U.S. Dept. of Commerce & Intel
Supports 10,000+ company jobs, 20,000 construction, 50,000 indirect across projects. Includes $65 million for workforce training.
Public summary lacks enforceable New Albany-specific metrics; funding release tied to milestones.
These projections were certified under CHIPS guidelines, requiring companies to attest to job creation plans and labor market tests (e.g., no layoffs impacting recruitment). Intel's applications included affidavits claiming compliance with Immigration and Nationality Act (INA) rules for prioritizing U.S. workers.Claims of Fraudulent or Misleading StatementsAs of July 2025, Intel's project has encountered severe challenges: the first New Albany fab delayed until 2030 (from 2025), reduced scope (potentially one fab operational initially), and escalating layoffs amid $821 million Q1 2025 losses. Critics, including worker advocacy groups, media, and X users, argue these developments render early job statements fraudulent, as they were used to secure billions in taxpayer funds without accountability. No formal fraud charges have been filed, but calls for investigations and clawbacks persist, especially under the Trump administration's review of CHIPS disbursements. Here's a breakdown of key claims, substantiated by discrepancies between promises and outcomes:
  • Project Delays and Scope Reductions (Fewer Jobs Realized):
    • Original: Two fabs by 2025-2028, yielding 3,000+ direct jobs. Current: First fab delayed to 2030 due to demand shortfalls and cost overruns; second indefinite. This halves potential jobs (~1,500 direct, 3,500 construction lost). Critics label it a "bait-and-switch" for subsidies.
    • Emergence: Reported in June 2025 memos; tied to weak PC/AI demand and competition from TSMC/Nvidia. Ohio incentives ($115 million) now at risk of clawback if hiring targets unmet.
  • Mass Layoffs Contradicting Certifications:
    • Intel laid off 15,000 (15%) in August 2024, shortly after preliminary CHIPS awards. Under new CEO Lip-Bu Tan (appointed late 2024), further cuts: 20%+ (21,000+) in April 2025, including factory workers (15-20% of Foundry division, potentially 10,000+). Total: Over 36,000 since 2024, from 125,000 to ~87,000 employees.
    • Claims: Violates CHIPS spirit and INA certifications, where Intel falsely attested no layoffs during PERM (green card) recruitment. X users and reports highlight Intel advertising 900+ PERM jobs in newspapers but only 77 on its site, minimizing U.S. applications to favor foreign workers (e.g., 2,039 H-1B LCAs in H1 2025). Laid-off U.S. workers denied rehire opportunities.
    • Broader: Advocacy groups like U.S. Tech Workers call it "worker displacement fraud." Media labels CHIPS a "scam" as Intel cuts jobs despite $8.5B grant.
  • Funding Without Accountability:
    • Intel's CHIPS contract lacks "firm, transparent" job metrics; funding uncertain amid Trump review. Critics argue 2022-2024 statements were misleading to lobby for subsidies without enforceable ties to U.S. hiring.
    • X commentary: Accusations of "job theft cartel" via fabricated credentials for foreign hires; links to broader "CHIPS scam" involving tax write-offs.
In summary, while no proven fraud exists, substantiated claims rest on math: Original 10,000 core jobs (3,000 direct + 7,000 construction) for two fabs. With delays/reductions to one fab by 2030, estimate ~5,000 jobs (50% reduction), calculated as (total jobs / 2) × 1. Add 36,000+ layoffs, and net U.S. job loss despite $7.86B funding. To derive: Start with promised figures, adjust for scope (halve for one fab), subtract layoffs impacting U.S. sites (e.g., 15-20% of 20,000 Ohio-related roles). This fuels demands for audits and reforms.

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