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Intel To Invest $20 Bln In Chip Manufacturing In Ohio, Reports


21/01/2022


Intel To Invest $20 Bln In Chip Manufacturing In Ohio, Reports
Semiconductor making firm Intel Corp is expected to announce an investment of $20 billion in a huge and new manufacturing facility outside Columbus, Ohio, aimed at researching and manufacturing sophisticated and advanced semiconductor chips, according to reports quoting sources with knowledge on the topic.
 
A 1,000-acre site in New Albany, Ohio, will be the new factory and it is anticipated that the investment will create about 3,000 permanent jobs. Intel will develop at least two semiconductor fabrication plants, according to Time magazine, which broke the news first.
 
The White House quoted US President Joe Biden on Friday about the US government's efforts "to increase the supply of semiconductors, make more in America, and rebuild our supply chains here at home."
 
Intel Chief Executive Pat Gelsinger is also slated to meet Biden on Friday at the White House.
 
The initial investment of $20 billion is the first step in a multibillion-dollar project that might eventually include eight factories.
 
There were no comments on the issue available from Intel. It however said in a statement that Gelsinger would reveal details on "Intel's latest ambitions for manufacturing leadership" as the company tries to "meet the rising demand for sophisticated chips."
 
Chipmakers are scrambling to increase output as chip shortages hit industries all across the world, from automobiles to consumer gadgets. Intel is also attempting to reclaim its status as the world's smallest and quickest chip manufacturer from current leader TSMC, situated in Taiwan.
 
Last autumn, Gelsinger said he planned to reveal a new US campus location by the end of the year, which would eventually house eight chip manufacturers.
 
According to the Washington Post, the facility may cost $100 billion over ten years and employ 10,000 people.
 
Gelsinger is spearheading Intel's expansion plans, particularly in Europe and the United States, as the company tries to keep up with global competitors and respond to a global semiconductor scarcity.
 
Reuters reported late last year that Intel and Italy were strengthening negotiations over an investment of around 8 billion euros ($9 billion) to develop an advanced semiconductor packaging plant.
 
The Biden administration is working hard to persuade Congress to approve $52 billion in funding to boost chip manufacture in the United States considerably. The chips funding was approved by Senate 68-32 in June as part of a broader competitiveness bill, but it has been blocked in the House.
 
Speaker of the House Nancy Pelosi said on Thursday that she intends to "get to conference" on the chips funding bill soon.
 
Intel's plans for new plants, however, will not help the current supply shortage because such complexes take years to construct. Chip shortages, according to Gelsinger, are projected to endure until 2023.
 
Intel broke ground on two plants in Arizona in September as part of its turnaround plan to become a major chipmaker for external clients. The $20 billion plants will raise Intel's total number of factories on its campus in Chandler, Arizona, to six.
 
Intel told Time that it looked at 38 locations before settling on New Albany, Ohio, in December. According to Time, Ohio has committed to investing $1 billion in infrastructure improvements to help the facility succeed.
 
(Source:www.businesstoday.in)