Intel is planning a $20 billion chip factory in Ohio

Intel is planning a $20 billion chip factory in Ohio

“Our expectation is that this becomes the largest silicon manufacturing location on the planet,” Intel CEO Pat Gelsinger told Time. The construction will begin this year, with production expected to start from 2025, the report said, adding the company was planning two plants. The plan is expected to be announced later on January 21 in Washington. Intel eventually plans to expand the site to 2,000 acres, which will house up to eight fabs, as semiconductors manufacturing units are called. The company’s investment in the area is the largest in Ohio history, and comes during a push to increase chip manufacturing domestically.

According to Intel CEO Pat Gelsinger, the chipmaker will study, develop, and produce breakthrough semiconductors at the site, which will be the ‘biggest silicon production location on the planet.’ As the globe grapples with a semiconductor shortage affecting phone manufacturers to vehicle makers, Intel Corp plans to build a $20 billion chip production facility on a 1,000-acre property in New Albany, Ohio, in the United States. According to a storey in Time magazine, the chipmaker will study, develop, and produce cutting-edge computer chips at the plant, which will employ at least 3,000 workers.

The initial $20 billion is the first step of what could be an eight-factory complex costing tens of billions of dollars, Reuters reported. “Twenty-five years ago, the United States produced 37 percent of the world’s semiconductor manufacturing… Today, that number has declined to just 12 percent,” Gelsinger had told CBS’ 60 Minutes in May 2021. “This is a big, critical industry and we want more of it on American soil: the jobs that we want in America, the control of our long-term technology future,” he added. Intel considered 38 sites before deciding on New Albany, and the state has agreed to invest $1 billion in infrastructure improvements.

The Ohio general assembly also expanded tax incentives in the area, letting projects with $1 billion or more in investments, get job creation tax credits for up to a period of 30 years. Intel also is trying to win back its position as maker of the smallest and fastest chips from current leader TSMC, which is based in Taiwan, Reuters said. Several countries have stepped up efforts to get into chip-making, a highly capital intensive and technical enterprise, as the coronavirus outbreak disrupted supply chains, leading to a shortage of semiconductors that are at the heart of electronic devices. Indian government, too, has offered several incentives to encourage companies to set up manufacturing units in the country.

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