Intel announced the construction of one of the largest semiconductor manufacturing sites in the world in the state of Ohio. Objective: to allow the company to once again become the number 1 in the electronic chip sector while boosting American production, while a shortage is hitting the whole world hard.
A phenomenal project
The firm announced an initial investment of more than $20 billion to build two factories using state-of-the-art technology. The site will be implemented in Ohio, not far from the state capital, Columbus. One thing is certain with this project: Intel is thinking big. This is the largest private investment in the history of Ohio, it should create 3,000 jobs within the technology company as well as 7,000 jobs in the construction sector.
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In total, the area will be able to accommodate eight semiconductor manufacturing plants with, ultimately, an investment that could reach 100 billion dollars. ” The impact of this investment in a mega-site will be profound. A semiconductor factory is not a factory like any other. Building this site is like building a small town, giving rise to a vibrant community of support services and providers. Ohio is an ideal location for Intel’s expansion into the United States due to access to top talent, the strength of existing infrastructure, and a long history as an industrial powerhouse. said Keyvan Esfarjani, Intel senior vice president of manufacturing, supply chain and operations.
The company expects an entire ecosystem for building semiconductors to spring up around the site, and has also put an additional $100 million on the table to partner with universities around the State.
Intel has big ambitions
The announcement comes after Intel revealed its plans to expand an already existing factory in Arizona for chip production, with a similar investment of $20 billion. As its CEO, Pat Gelsinger, who arrived at the head of the company in 2021, explained, Intel aims to once again become the world number 1 in the sector after having lost many market shares to the benefit of TSMC, a Taiwanese firm which has become a real juggernaut.
With this in mind, Intel now wants to manufacture semiconductors ordered by other companies; for most of its existence, the firm only built chips for its own use. The task still seems difficult for Intel, as its Asian rivals have taken the lead, and continue to evolve rapidly.
” Planning for the first two fabs will begin immediately, with construction expected to begin in late 2022. Production is expected to come online in 2025, when the fab will supply chips using the industry’s most advanced transistor technologies. Ohio will host Intel’s first new manufacturing site in 40 years “, declares the company in a communicated.
This is what the site should look like in the initial phase of the project. Image: Intel
Restoring Sovereignty to the United States
” Today’s investment marks another significant way Intel is leading the effort to restore America’s leadership in semiconductor manufacturing. 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 cutting-edge capabilities and skills back to the United States to strengthen the global semiconductor industry. These factories will create a new epicenter for advanced chip manufacturing in the United States, which will strengthen Intel’s national lab-to-lab pipeline and cement Ohio’s leadership in research and high technology. “, explains Pat Gelsinger.
The shortage of semiconductors currently affecting the planet has changed the plans of governments in many ways. This was partly caused by the Covid-19 pandemic and a monumental increase in demand for electronic devices, but also, as reported by the New York Times, by shifting chip manufacturing over the years to Asian countries, which offer subsidies to companies building factories there. The numbers speak volumes: The United States accounts for about 12% of global chip production, down from 37% in 1990. Europe’s share fell from 40% to 9% over the same period “, reports the newspaper.
In this context, Joe Biden announced a budget of more than $50 billion to boost local production of semiconductors, with the aim of ending dependence on China in this area. The law, called CHIPS Act, was validated by the Senate but came up against the House of Representatives. “ The scale and pace of Intel’s expansion into Ohio, however, will be heavily dependent on CHIPS funding. “recalls Keyvan Esfarjani.
For its part, the European Union is also seeking to produce chips locally, Intel is also considering setting up a production plant in Germany, although the project is not yet official.