Intel announced new chip manufacturing factory to restore U.S. semiconductor manufacturing and counterbalance production of chips from East Asia
Intel has announced plans for initial investment of more than $20 billion in the construction of two new leading-edge chip factories in Licking County, Ohio. The new chip manufacturing complex would increase U.S. production of computer chips, counterbalancing Asia’s manufacturing dominance.
Intel said that the two chip factories would create 3,000 permanent jobs, 7,000 short-term construction jobs and tens of thousands of permanent positions at suppliers and partners.
The planned investment by Intel outside in Licking County, just outside of Columbus, would include eight factories. Construction of the first two factories is expected to begin late this year with production to start by 2025, Intel said.
Effort to restore U.S. semiconductor manufacturing
“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” said 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 is bringing leading capability and capacity back to the United States to strengthen the global semiconductor industry,” he said, adding that the new chip factories will create a new epicenter for advanced chipmaking in the U.S.
With the new factories, Ohio will be home to Intel’s first new manufacturing site location in 40 years. “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” said said Keyvan Esfarjani, Intel senior vice president of manufacturing, supply chain and operations.
Biden urges Congress to pass chips bill
Biden termed the Intel investment “historic” for Ohio and one of the largest investments in semiconductor manufacturing in American history. The Biden administration has been pushing to bring more chip manufacturing to address the global chip shortage and expand U.S. chip manufacturing capacity.
“America invented these chips … But today, 75 percent of production takes place in East Asia. Ninety percent of the most advanced chips are made in Taiwan” Biden said. ’We now rank number nine. China was number eight in the world three decades ago. Now they’re number two. And other countries are closing in fast.” He asserted that his administration is going to change this by investing in America. “We’re investing in American workers. We are going to stamp everything we can “Made in America,” especially these computer chips.”
Biden used the $20 billion Intel investment in Ohio to push Congress to pass chip bill, which would provide $52 billion to the chip industry. “China is doing everything it can to take over the global market so they can try to out compete the rest of us,” Biden said. “I want other cities and states to be able to make an announcement like the one being made here today,” Biden said. “And that’s why I want to see Congress pass this bill right away and get it to my desk. Let’s get another historic piece of bipartisan legislation done,” he said.
