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Intel eyeing Ohio for pair of chip factories amid global shortage – TechCrunch

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Intel this week outlined plans to build two chip factories outside of Columbus, Ohio. The announcement is still in its early stages, implying the possible allocation of $20 billion to build the factories designed to combat the ongoing global chip shortage – or at least to address potential future problems.

The company has sketched out a rough schedule for the first plant, with planning beginning immediately and construction following before the end of the year. This facility would be commissioned in 2025, marking its first new manufacturing site in 40 years. The project is expected to span 1,000 acres of space, with enough space to install up to eight chip factories, if things go according to plan.

“Today’s investment marks another significant way for Intel to lead efforts to restore American leadership in semiconductor manufacturing,” CEO Pat Gelsinger said in a statement. “Intel’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come. Intel is bringing cutting-edge capabilities and capabilities to the United States to strengthen the global semiconductor industry. »

The construction phase will create 7,000 jobs, according to Intel figures, as well as 3,000 permanent jobs once things are up and running. Biden’s White House touted the news as “another sign of the strength of the US economy,” in a statement released yesterday.

A rendering shows the first plans for two new state-of-the-art Intel processor factories in Licking County, Ohio. Announced on January 21, 2022, the $20 billion project spans nearly 1,000 acres and is the largest private sector investment in Ohio history. Construction is expected to begin in late 2022, with production coming online in late 2025. (Credit: Intel Corporation)

He also used the occasion to promote a policy aimed at accelerating domestic R&D and manufacturing amid a Covid-fueled global supply chain crisis that has been seen by some as a black eye for the economy. ‘administration.

“To accelerate this progress, the President urges Congress to pass legislation to strengthen U.S. research and development and manufacturing for critical supply chains, including semiconductors,” the administration writes. . “The Senate passed the United States Competition and Innovation Act (USICA) in June and the administration is working with the House and Senate to finalize this legislation. It includes full funding for the CHIPS for America Act, which will provide $52 billion to catalyze more private sector investment and maintain America’s technology leadership.

Both sides also touted the security benefits of US-based chip manufacturing – no doubt a nod to increased scrutiny of manufacturers like Huawei, which has proven a major target for the US. previous administration. The company notes that “the Ohio site will also provide state-of-the-art processing technology to meet the unique security and infrastructure needs of the U.S. government.”

The news also comes as Intel faces increased competition from companies like Samsung, while companies like Apple have opted to abandon the company’s chips in favor of proprietary designs.


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