Gelsinger, in an interview Friday on CNBC, said the project is critical to the auto industry.
"When you think of the auto industry, you're going to see us have more to say with the auto industry leaders as they are looking to us and others to build up and satisfy their demands," Gelsinger said.
"Because as we've seen, the economic impact of not having enough chips to meet the growth of that (demand) has been inflationary and job impacting, so this is critical to support that industry, which is already very present in the heartland, and now the silicon heartland."
Intel has been investing billions of dollars in automotive technologies over the last few years.
The ongoing global microchip shortage has afflicted industries globally including the auto industry. President Joe Biden's administration wants Congress to approve $52 billion to expand U.S. semiconductor manufacturing.
Biden and Gelsinger were scheduled to speak together about the Ohio news from the White House later Friday morning.
While the new chip hub will address long-term supply challenges, it won’t provide immediate relief for the auto and other industries that have faced a chronic microchip shortage since early 2021 and will likely stretch deep into 2022, according to analysts.
Commerce Secretary Gina Raimondo applauded the Intel announcement.
“This investment is a big win for Intel, for American manufacturing and for American consumers who can look forward to lower prices as we bring home production of the semiconductors that keep our economy running,” Raimondo said in a statement Friday.
Raimondo called for Congress to “move swiftly” to pass the billions in funding for domestic semiconductor production. She also will deliver remarks Friday alongside the president.
“Other countries aren’t waiting,” she said, “and every day we wait, we fall further behind.”
U.S. Sen. Rob Portman, R-Ohio, called the plan a “historic investment” for Ohio and the U.S. The senator said Congress is working in a bipartisan fashion to pass legislation such as the CHIPS Act and the broader U.S. Innovation and Competition Act.
“This legislation would improve our nation’s competitiveness in technology and communications, foreign relations and national security, domestic manufacturing, education, trade and other important issues,” Portman said in a statement.