Intel Corp said on Friday it would invest up to $100 billion to build potentially the world’s largest chip-making complex in Ohio, looking to boost capacity as a global shortage of semiconductors affects everything from smartphones to cars.
The move is part of CEO Pat Gelsinger’s strategy to restore Intel’s dominance in chip making and reduce America’s reliance on Asian manufacturing hubs, which have a tight hold on the market.
An initial $20 billion investment – the largest in Ohio’s history – on a 1,000-acre site in New Albany will create 3,000 jobs, Gelsinger said. That could grow to $100 billion with eight total fabrication plants and would be the largest investment on record in Ohio, he told Reuters.
Dubbed the silicon heartland, it could become “the largest semiconductor manufacturing location on the planet,” he said.
While chipmakers are scrambling to boost output, Intel’s plans for new factories will not alleviate the current supply crunch, because such complexes take years to build.
Gelsinger reiterated on Friday he expected the chip shortages to persist into 2023.
U.S. President Joe Biden touted Intel’s investment on Friday at a White House event with Gelsinger and again made the case for congressional action.
“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.
U.S. Commerce Secretary Gina Raimondo said at the event the current semiconductor supply chain is “far too dependent on conditions and countries halfway around the world.”
Intel ceded the No. 1 semiconductor vendor spot to Samsung Electronics Co Ltd in 2021, dropping to second with growth of just 0.5%, the lowest rate in the top 25, data from Gartner showed.
As part of its turnaround plan to become a major manufacturer of chips for outside customers, Intel broke ground on two factories in Arizona in September. The $20 billion plants will bring the total number of Intel factories at its campus in the Phoenix suburb of Chandler to six.
Construction of the first two factories is expected to begin late in 2022 and production in 2025.
