Intel's $20 billion investment is aimed toward building two new chip plants in Licking County, Ohio. I can already hear the sound of grasshoppers surrounding this place. (Image Credit: Intel)
Is it enough?
On January 21st, Intel announced plans to invest over $20 billion toward building two chip factories on a 1,000-acre site in Licking County, Ohio. This move signals the company's commitment to manufacturing technology products in the States. Intel expects to begin construction later this year, aiming to make it fully operational by the end of 2025.
Intel is also putting in another $100 million investment for an education pipeline to hire 3,000 highly skilled workers at the facility. It expects to generate 7,000 construction jobs while it's being built. In addition, the facility will support tens of thousands of additional jobs for suppliers and partners. The total amount invested could reach $100 billion over ten years. This investment could also lead to a new tech hub in central Ohio, where relevant businesses supporting chip manufacturing open new facilities while offering expertise to the area.
Intel will be producing the Intel 18A, one of the most advanced chips, at the Ohio facility. These have applications for high-end computers commonly used in video gaming and data centers operated by tech giants such as Microsoft and Amazon. In addition, this site plans to supply specially designed chips for cars, a necessity for U.S. consumers, and mobile devices.
The facility is expected to produce Intel's 18A chips along with chips for mobile devices and cars. (Image Credit: Intel)
"Today's investment marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership," said Pat Gelsinger, CEO of Intel. "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 leading capability and capacity back to the United States to strengthen the global semiconductor industry. These factories will create a new epicenter for advanced chipmaking in the U.S. that will bolster Intel’s domestic lab-to-fab pipeline and strengthen Ohio’s leadership in research and high tech.”
“The impact of this mega-site investment will be profound,” said Keyvan Esfarjani, Intel senior vice president of Manufacturing, Supply Chain and Operations. “A semiconductor factory is not like other factories. Building this semiconductor mega-site is akin to building a small city, which brings forth a vibrant community of supporting services and suppliers. Ohio is an ideal location for Intel’s U.S. expansion because of its access to top talent, robust existing infrastructure, and long history as a manufacturing powerhouse. The scope and pace of Intel’s expansion in Ohio, however, will depend heavily on funding from the CHIPS Act.”
In 2021, Gelsinger revealed plans that would put Intel back on the map and develop new chip factories, reducing the semiconductor industry's reliance on Asian manufacturers. The company announced intentions to construct a $20 billion chip factory in Arizona and a $3.5 billion chip plant in New Mexico.
According to the Semiconductor Industry Association, the United States developed 37% of the world's semiconductors twenty-five years ago. Now, that same manufacturing number decreased to 12%.
Samsung, Micron Technology, and Taiwan Manufacturing Semiconductor also announced a project to build chip plants on American soil. Joe Biden also pushed a $52 billion bill, which could help with chip production in the U.S.
“We are going to invest in America,” Biden said at the White House. “We're investing in American workers. We're going to stamp everything we can, `Made in America,' especially these computer chips.”
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