Plans to build two chip manufacturing facilities outside of Columbus, Ohio were highlighted by Intel this week. The announcement is still in its early stages, but it is believed that $20 billion will be allotted to build factories to tackle the global chip shortage.
The first factory will be built before the end of the year after the company sketched a rough plan. It would be the first new manufacturing site in 40 years. If things go according to plan, the project will span 1,000 acres of space, with enough room to fit up to eight chip factories.
Pat Gelsinger said in a release 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.
According to Intel, the construction phase will create 7,000 jobs, along with an eventual 3,000 permanent jobs once things are up and running. The Biden White House said the news was a sign of the strength of the American economy.
Plans for two new leading-edge Intel processor factories are shown in a rendering. The $20 billion project spans nearly 1,000 acres and is the largest private-sector investment in Ohio history. Production is expected to start at the end of the century. The image is from Intel Corporation.
It used the opportunity to promote policy aimed at speeding up domestic R&D and manufacturing amid a global supply chain crunch that has been seen as a black eye for the administration.
The administration is urging Congress to pass legislation to strengthen U.S. research and development and manufacturing. The Senate passed the USICA in June and the Administration is working with the House and Senate to finalize the legislation. It includes full funding for the CHIPS for America Act, which will provide over $50 billion in private-sector investments and continued American technological leadership.
The security advantages of manufacturing chips in the U.S. were promoted by both parties. The company says that the Ohio site will provide leading-edge process technology to support the U.S. government.
The news also comes as Intel deals with increased competition from companies likeSamsung, while firms such as Apple have opted to drop the company's chips in favor of first-party designs.
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