Intel Plans to Invest Over USD 20 Billion to Construct Two New Chip Factories
Jan 21, 2022 By MarketDepth
Intel Corp. (NASDAQ: INTC) has reported plans to initially invest over USD 20 Billion to construct two new chip factories within Ohio. This investment will boost production to meet the demand for advanced semiconductors to power a new generation of innovative products from Intel to serve the needs of foundry customers as part of the company’s IDM 2.0 strategy. Intel has pledged another USD 100 Million towards partnerships with educational institutions to develop talent and bolster research programs in the region.
“Today’s announcement is monumental news for the state of Ohio. Intel’s new facilities will be transformative for our state, creating thousands of good-paying jobs in Ohio manufacturing strategically vital semiconductors, often called ‘chips.’ Advanced manufacturing, research and development, and talent are part of Ohio’s DNA, and we are proud that chips – which power the future – will be made in Ohio, by Ohioans.”Ohio Gov. Mike DeWine
“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 epicentre 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.” “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.”