#84 – Inside Our Industry – Intel’s Investment in Chip Factory in Ohio Should Help Many Industries
Posted on | Inside Our Industry
Intel’s Investment in Chip Factory in Ohio Should Help Many Industries
News broke earlier this month on Intel’s plans to invest up to $100 billion to build two chips plants in Ohio, just outside of Columbus.
According to a report from The Columbus Dispatch:
The first phase of the project calls for Intel to make a $20 billion investment to build two plants, called fabs, in Jersey Township in Licking County northeast of Columbus that will employ 3,000 workers with an average salary of $135,000 per year. There also will be 3,000 construction jobs and as many as 10,000 indirect jobs.
Intel said on Friday it would invest up to $100 billion to build potentially the world’s largest chip-making complex in Ohio, as it looks to boost capacity amid a global shortage of semiconductors used in everything from smartphones to cars.
The move is part of Chief Executive Officer Pat Gelsinger’s strategy to restore Intel’s dominance in chip making and reduce America’s reliance on Asian manufacturing hubs, which have a tight hold on the market.
Dubbed the silicon heartland, it could become “the largest semiconductor manufacturing location on the planet,” he said.
While chipmakers are scrambling to boost output, Intel’s plans for new factories will not alleviate the current supply crunch, because such complexes take years to build.
Gelsinger reiterated Friday he expected the chip shortages to persist into 2023.
To dramatically increase chip production in the United States, the Biden administration is making a big push to convince Congress to approve $52 billion in subsidy funding.
Intel’s Ohio investment is expected to attract partners and suppliers. Air Products, Applied Materials, LAM Research and Ultra Clean Technology have shown interest in establishing a presence in the region, Intel said.
Construction of the first two factories is expected to begin late in 2022 and production in 2025.