(Image Credit: Intel)
On September 9th, Joe Biden joined Intel, Ohio Gov. Mike DeWine, and federal, state, and local officials to break ground on Intel's $20 billion project in the Silicon Heartland to build the world's most advanced semiconductor factories. Semiconductor production at these factories could begin in 2025. The groundbreaking event didn't end there. It also celebrated the CHIPS and Science act designed to bring back chip manufacturing in the states. This legislation also resembles Intel's approach to constructing the Ohio site. Ever since the pandemic began, the chip shortage has impacted the economy while playing a role in increasing the prices of cars and other products.
"Folks, we need to make these chips right here in America to bring down everyday costs and create good jobs," Biden said at the site.
Intel started working at the site two months ago. The event didn't stop construction work as Biden, political leaders, Intel executives, educational leaders, and others spoke.
Companies researching, designing, and developing semiconductors expect to receive incentives provided by the CHIPS act. Chip manufacturing on American soil drastically declined from 37% in 1990 to 12% today. According to Biden, U.S. companies have announced plans to construct semiconductor facilities due to the legislation. "The future of the chip industry is going to be made in America," he said.
With a $100 billion investment, Intel's Licking County site could be home to eight plants employing 3,000 workers making $135,000 per year on average. The site expects to have 7,000 construction workers. In addition, Intel suppliers plan to create thousands of more jobs.
According to Intel, the fab will be the most advanced in the country and on Earth, manufacturing chips for cars, computers, and cell phones, among other devices that helps an economy flourish. The plants could also have a significant role in Intel's foundry business, which relies on other businesses to produce semiconductors. The new Ohio plants can help make the foundry a big part of Intel's business.
These factories are expected to produce chips for the military and military contractors. By 2030, foundry work could increase from $90 billion per year to $200 billion per year. However, only time can tell exactly how much business is carried out at the Ohio site.
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