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A rendering of the site.
The image is of Intel.
Intel will spend at least $20 billion on a new chip manufacturing site in New Albany, near Columbus, Ohio. The 1,000-acre location will initially host two chip factories, and is set to directly employ at least 3,000 people and tens of thousands more across suppliers and partners. The site is expected to be operational in 2025.
In an interview with Time, Intel CEO Pat Gelsinger said that the company expects the site to become the largest Silicon manufacturing location on the planet. The new site could become the Silicon Heartland, according to Gelsinger. Over the next decade, Intel plans to invest up to $100 billion in the site, as well as around $100 million in partnership with Ohio universities, colleges, and the US National Science Foundation to foster new talent.
Several states have Intel factories, including Oregon, New Mexico, and Arizona. The New York Times reports that Ohio is the first manufacturing expansion into a new state in over 40 years. The new CEO of Intel has already announced a $20 billion expansion of the company's existing Arizona complex.
Intel wants it to be the largest manufacturing location on the planet.
Obtaining the correct permits, raw materials and supplies, and production machines are some of the challenges of expanding into a state without an existing chip manufacturing presence. New Albany is known for its inexpensive land, and any manufacturing plant could benefit from engineering graduates at nearby Ohio State University.
According to reports, states were competing for the huge economic opportunity a new plant represents. According to Time, Intel didn't want to displace current residents and Ohio was a better regulatory fit than one other state. It is different from the bidding process that led to Amazon awarding a second HQ to New York, which was opposed by residents and local lawmakers.
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The site is what it is today.
The image is of Intel.
:noupscale is a file from the Intel Ohio Expansion.
There are planned factories.
The image is of Intel.
The announcement comes as the world continues to grapple with an acute shortage of computer chips that has impacted everyone from games console manufacturers to automakers. The shift of chip manufacturing from the US and Europe to Asia has been revealed by the shortage. The US Senate approved a $52 billion subsidy package for the chip industry in June of last year, but it is yet to be passed by the House.
TSMC and Samsung have announced new manufacturing investments in Arizona and Texas, respectively. Some officials think that Intel has the advantage of being a US company, while TSMC has worried Pentagon officials.
Intel CEO Pat Gelsinger said in a statement that the investment marks another significant way that Intel is leading the effort to restore U.S. Semiconductor manufacturing leadership. Intel's actions will help build a more resilient supply chain and ensure reliable access to advanced Semiconductor for years to come. Leading capability and capacity will be coming back to the United States.
Update January 21st at 5:39AM: Intel has made an announcement.
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