WASHINGTON/SAN FRANCISCO: Intel Corp said Friday it will invest more than $20 billion in two new chip-making plants in Ohio, as it looks to boost its production capacity amid a global shortage of semiconductors Which are used in everything from smartphones to cars. ,
The move is part of CEO Pat Gelsinger’s strategy to restore Intel’s dominance in chipmaking and reduce America’s dependence on Asian manufacturing centers, which have a vice grip on the market.
“These factories will create a new epicenter for advanced chipmaking in the US that will strengthen Intel’s domestic lab-to-fab pipeline,” Gelsinger said in a statement.
While chipmakers are scrambling to boost production, Intel’s plans for new factories won’t ease the current supply crisis, as such complexes take years to build. Gelsinger previously said he expects the chip shortage to last through 2023.
To dramatically increase chip production in the United States, the Biden administration is making a big push to persuade Congress to approve $52 billion in funding.
“This project is an important step in increasing America’s domestic chip manufacturing capacity,” Deputy Secretary of Commerce Dawn Graves said in a separate statement, referring to Intel’s announcement. Gelsinger will meet with Biden at the White House on Friday, Intel said.
Intel lost out to Samsung Electronics Co Ltd as a top semiconductor vendor in 2021 and fell to second place with 0.5% growth last year, providing the lowest growth rate among the top 25 vendors, data from Gartner showed. It’s gone.
As part of its turnaround plan to become a major manufacturer of chips for external customers, Intel broke ground in September at two factories in Arizona. The $20 billion plant will bring the total number of Intel factories to six on its campus in the Phoenix suburb of Chandler.
The planned investment on an eight-factory complex in Ohio will cost billions of dollars and create 3,000 permanent jobs and 7,000 construction jobs on a 1,000-acre site in Lick County, outside Columbus.
Intel’s new investment is expected to attract partners and semiconductor equipment and materials suppliers.
Intel said Air Products, Applied Materials, LAM Research and Ultra Clean Technology have shown interest in establishing their presence in the region.
The first two factories are planned to begin immediately, with construction expected to begin late in 2022 and production in 2025.
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