Intel to Open a Chip-Manufacturing Facility in Ohio
Intel Corp. announced on Friday plans to pump at least $20 billion in what could be its latest chip-manufacturing facility in Ohio to increase its chip-making production to accommodate the heightened semiconductor demand for digital units.
The Santa-Clara-based company will invest in two semiconductor-making plants outside Columbus, Ohio. This will place the company in the spotlight and allow it to sustain its chain of demand by enlarging its business, resulting in over $100 billion in investment pledges last year alone.
According to the chip giant, the blueprint work for the first two facilities will begin immediately, construct groundwork will start by the end of 2022, and production will start online by 2025.
In parallel, Intel also vouched to invest almost $100 million in partnerships with educational establishments to create an avenue of talent and support research programs in the area.
Early Friday, the White House revealed that Intel investment maneuvers had played a critical role in heightening the country’s efforts in empowering domestic-chip manufacturing.
Governments – specifically Europe and the U.S. – have raised concerns about fortifying their chip supply chain following years of downhill gravitations. The Covid-19 pandemic increased the effect of detrimental shortages in semiconductors.
“The Covid-19 pandemic shined a spotlight on the fragility in the global semiconductor supply chain,” the White House said in a statement.
From its side, Intel chief executive officer (CEO), Pat Gelsinger, emphasize the critical role this move will take in reviving the giant’s capital by reestablishing its status in the market as one of the leading semiconductor makers, to become a globally renowned leader in chip manufacturing, alongside similar companies.
In 2020, Nvidia Corp exceeded Intel by becoming the U.S.’s top semiconductor firm, followed by South Korean titan Samsung Electronics Co.’s overtakes of the Santa-Clara company in 2021. Experts believe Samsung will uphold that position in its following earnings report in the upcoming week.
In 2021, Intel publicized plans to build a chip-making facility in both Arizona and New Mexico and an estimate of a $95 billion commitment to manufacturers in Europe.
Intel’s Ohio-based chip plant is anticipated to fill in 3,000 jobs, in addition to creating another “7,000 construction jobs and tens of thousands of additional support jobs,” according to the company.
Chip-makers worldwide are setting the ground to fight off the semiconductor shortage, which has left a rippling effect for various industries, specifically the electric vehicles (EV) makers. PC makers have also experienced rising demand for their units, however, due to the rise in demand and drop in supply, the scarceness of significant components affected shipments.