Intel is building a $20 billion factory in the US to help with the global chip shortage
The company said it eventually plans to invest $100 billion in the site.
According to a new report from TIME, Intel is planning to break ground on its new facilities sometime this year. The company has committed $20 billion to this new project, which will include two semiconductor fabrication plants on the 1,000-acre plot of land to start.
The company hopes that this new plant will become operational by 2025. It plans on eventually spending up to $100 billion on the site and potentially expanding production to eight fabrication plants over 2,000 acres. “Our expectation is that this becomes the largest silicon manufacturing location on the planet,” said CEO Pat Gelsinger to TIME.
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This isn’t the first that we’re hearing from Intel in terms of ramping up its chip production. The company pledged to invest another $20 billion in its Arizona factories early last year. But this expansion represents the company’s first move to another state in more than 40 years.
Why did Intel choose Ohio for its new chip factories?
The company chose Ohio as its destination for a couple of reasons. First, the cost of land in that particular area is very affordable. Secondly, the company feels that the state is an untapped resource for engineering talent, with the close by Ohio State University.
Intel says it will spend $100 million over the next 10 years establishing the Intel Ohio Semiconductor Center for Innovation. The company will use this program to work with colleges and universities to help develop talent. And the company will need plenty of it, with initial plans said to open up at least 3,000 jobs.
The world has been stricken by the global semiconductor shortage for a couple of years now. It’s nice to see that a major company has decided to try and fix that problem.
If anyone can help us out of a chip shortage, it will likely be Intel. Hopefully, this new factory location will eventually help alleviate some of the supply pressure that tech companies have felt over the last couple of years.
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