Intel Corp announced on Friday that it will invest more than $20 billion in two new chip-making operations in Ohio, as part of a global scarcity of semiconductors used in everything from smartphones to automobiles.
The move is part of Intel CEO Pat Gelsinger’s plan to reclaim the company’s chip-making dominance and diminish America’s reliance on Asian manufacturing hubs, which have a vice-like grip on the market.
In a statement, Gelsinger stated, “These factories will create a new epicenter for advanced chipmaking in the United States, bolstering Intel’s domestic lab-to-fab pipeline.”
The Biden administration is working hard to persuade Congress to approve $52 billion in funding to greatly enhance chip manufacture in the United States.
In a separate statement, Deputy Secretary of Commerce Don Graves said of Intel’s announcement, “This project is a key step in strengthening America’s domestic chip manufacturing capability.” According to Intel, Gelsinger will meet with Biden at the White House later on Friday.
According to Gartner’s research, Intel lost its position as the top semiconductor vendor in 2021 to Samsung Electronics Co Ltd (005930. KS), and it slid to second place with 0.5 percent growth last year, slowest growth rate among the top 25 suppliers.
Intel broke ground on two factories in Arizona in September as part of its turnaround plan to become a major maker of chips for outside clients. The $20 billion plants will raise Intel’s total number of factories on its campus in Chandler, Arizona, to six. find out more.
On the 1,000-acre site in Licking County, just outside of Columbus, the anticipated investment in what might be an eight-factory complex will cost tens of billions of dollars and produce 3,000 permanent jobs and 7,000 construction jobs.
Intel’s latest investment is intended to attract partners and suppliers of semiconductor equipment and materials.
According to Intel, Air Products (APD.N), Applied Materials (AMAT.O), LAM Research (LRCX.O), and Ultra Clean Technology have expressed interest in setting up shop in the region.
The first two facilities will begin planning immediately, with building beginning late in 2022 and manufacturing beginning in 2025.
