Intel announced plans this week to develop two chip fabrication plants south of Columbus, Ohio. The initiative is still in its early stages, with a total budget of $20 billion set aside to build plants to alleviate the existing worldwide chip shortage — or at the very least, to address any future difficulties. The corporation drew out a rough timeframe for the first factory, with planning starting right away and building starting by the year’s end. That plant would open in 2025, marking the company’s first new manufacturing facility in 40 years. If all goes according to plan, the project will cover 1,000 acres of land, with enough area for up to eight chip manufacturers.
In a statement, CEO Pat Gelsinger said, “Today’s investment represents another key way Intel is spearheading the fight to reestablish U.S. semiconductor manufacturing supremacy.” “Intel’s measures will contribute to the development of a more resilient supply chain and secure long-term access to innovative semiconductors.” To boost the global semiconductor sector, Intel is bringing leading capability and capacity back to the United States.” According to Intel, the building phase will generate 7,000 employments, with an additional 3,000 permanent positions once the facility is operational. In a statement released yesterday, the Biden White House hailed the news as “another proof of the resilience of the American economy.”
It also took advantage of the opportunity to promote policies targeted at advancing local R&D and manufacturing in the face of a global supply chain crunch caused by COVID, which has viewed as a black eye for the administration by some. The administration argues “to accelerate this progress, the President is encouraging Congress to approve legislation to bolster U.S. research and development and manufacture for crucial supply chains, particularly semiconductors.”
“The US Innovation and Competition Act (USICA) enacted by the Senate in June, and the Administration working with the House and Senate to finalize the bill. It also includes full funding for the CHIPS for America Act, which would provide $52 billion to spur additional private-sector investment and ensure America’s technological leadership.” Both parties also emphasized the security benefits of making semiconductors in the United States, no doubt in response to increasing monitoring of companies like Huawei, which was a key target of the previous administration.
“The Ohio plant will also provide leading-edge process technologies to meet the United States government’s specific security and infrastructure needs,” the business said. The announcement also comes as Intel faces greater competition from companies like Samsung, with companies like Apple opting to use first-party designs instead of Intel’s CPUs.
