Intel plans to invest $20 billion to build a new chip-making facility in Ohio, the company announced on Friday, in a push to ramp up domestic production of semiconductors as global supply chain disruptions and increased demand have led to a massive worldwide chip shortage.
The chip-making facility will be built in New Albany on the outskirts of Columbus, Ohio, Time first reported, citing an official confirmation by Intel.According to the report, the new complex will first have two chip making factories and directly employ 3,000 people.
Construction of the complex will reportedly begin this year and the chip making plants are expected to be operational by 2025. According to the New York Times, Biden Administration officials—who have backed a legislative effort for major federal investment into semiconductor manufacturing to compete with China—are expected to discuss the Intel announcement on Friday.
Disruptions in the global supply chain caused by the Covid-19 pandemic has had a serious impact on semiconductors in the past two years, as well as a sharp uptick in demand for digital products as more people work from home. A majority of advanced computer chips—used by the likes of Apple, AMD and Qualcomm—are manufactured by Taiwan Semiconductor Manufacturing Company (TSMC), whose proximity to China has also raised some concerns.
Legislation known as the CHIPs act, which would provide $52 billion in subsidies for the semiconductor industry, was passed by the Senate with bipartisan support last year, but it is yet to be passed by the House. In an op-ed for CNN in December, Intel CEO Pat Gelsinger backed the federal package, noting that it may not solve the current chip shortages but will “be fundamental in avoiding them in the future.”
In an effort to regain supremacy in the chips business, Intel has pledged more than $100 billion in investments over the past year. These efforts have been driven by Gelsinger, who became Intel’s CEO last year. In 2020, graphics chips maker Nvidia overtook Intel to become the most valuable chip maker in the U.S. and last year it was overtaken by Samsung as the biggest chip maker by quarterly revenue.
In the past few years, Intel chips have also lost their performance crown to rival AMD in both the desktop and mobile computing markets, caused by several years of delays to its cutting end manufacturing process.
I am a Breaking News Reporter at Forbes, with a focus on covering important tech policy and business news. Graduated from Columbia University
Intel Corp said on Friday it would invest up to $100 billion to build potentially the world’s largest chip-making complex in Ohio, looking to boost capacity as a global shortage of semiconductors affects everything from smartphones to cars. The move is part of Chief Executive Officer Pat Gelsinger’s strategy to restore Intel’s dominance in chip making and reduce America’s reliance on Asian manufacturing hubs, which have a tight hold on the market.
An initial $20 billion investment – the largest in Ohio’s history – on a 1,000-acre site in New Albany will create 3,000 jobs, Gelsinger said. That could grow to $100 billion with eight total fabrication plants and would be the largest investment on record in Ohio, he told Reuters. Dubbed the silicon heartland, it could become “the largest semiconductor manufacturing location on the planet,” he said.
While chipmakers are scrambling to boost output, Intel’s plans for new factories will not alleviate the current supply crunch, because such complexes take years to build. Gelsinger reiterated on Friday he expected the chip shortages to persist into 2023.
To dramatically increase chip production in the United States, the Biden administration aims to persuade Congress to approve $52 billion in subsidy funding. read more …
- PC Based Instrumentation and Control. Elsevier. p. 32. ISBN 9780750647168.
- “1989 Intel Microprocessor and Peripheral Handbook Vol 1”. Internet Archive. Archived from the original on 2016-07-03. Retrieved 2016-08-18.
- PS/2 Model 80 Clones Based on Intel Chipset”. InfoWorld. p. 1. Archived from the original on June 27, 2014. Retrieved October 15, 2016.
- New EISA Features Set It Apart From the AT Bus”. InfoWorld. p. 23. Archived from the original on June 27, 2014. Retrieved October 15, 2016.
- Uncorking the future”. InfoWorld. p. 101. Archived from the original on June 27, 2014. Retrieved October 15, 2016.
- MCA Multiprocessing In the Works at Intel”. InfoWorld. p. 1. Archived from the original on February 27, 2017. Retrieved October 15, 2016.
- Intel Adds Low-Power 386SX To List of Chip Announcements”. InfoWorld. p. 105. Archived from the original on June 27, 2014. Retrieved October 15, 2016.
- Intel to Market VLSI Topcat Chips”. InfoWorld. p. 3. Archived from the original on June 27, 2014. Retrieved October 15, 2016.
- Intel to Introduce 20-MHz Chip Set”. InfoWorld. p. 5. Archived from the original on June 27, 2014. Retrieved October 15, 2016.
- Intel Debuts EISA Chip Set for Lower Cost 32-Bit Systems”. InfoWorld. p. 28. Archived from the original on June 27, 2014. Retrieved October 15, 2016.