Intel Commits $20b to New US Chip Factories

Intel has announced plans for an initial investment of more than $20 billion in the construction of two new leading-edge chip factories in Ohio, USA, which will be home to Intel’s first new manufacturing site location in 40 years. The investment will help boost production to meet the demand for advanced semiconductors, powering a new generation of products from Intel and serving the needs of foundry customers as part of the company’s IDM 2.0 strategy.

“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”.

As the largest single private-sector investment in Ohio history, the initial phase of the project is expected to create 3,000 Intel jobs and 7,000 construction jobs over the course of the build, and to support tens of thousands of additional local long-term jobs across an ecosystem of suppliers and partners.

Spanning nearly 1,000 acres in Licking County, just outside of Columbus, the “mega-site” can accommodate a total of eight chip factories, as well as support operations and ecosystem partners. At full buildout, the total investment in the site could grow to as much as $100 billion over the next decade, making it one of the largest semiconductor manufacturing sites in the world.

“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”.

To help develop and attract a pipeline of skilled talent from within the region, Intel plans to invest approximately $100 million over the next decade in partnership with Ohio universities, community colleges and the U.S. National Science Foundation. These partnerships will span a range of activities, from collaborative research projects to building semiconductor-specific curricula for associate and undergraduate degree programs.

Planning for the first two factories will start immediately, with construction expected to begin late in 2022. Production is expected to come online in 2025 when the fab will deliver chips using the industry’s most advanced transistor technologies.

You can find more information about Intel and its $20 billion investment in the construction of two new US chip factories on its website.

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