Intel (INTC) to Invest $20 Billion In Two New Chip Plants in Ohio

Intel Corp (NASDAQ: INTC) announced today new plans to pour $20 billion into building two new manufacturing plants in Ohio, as a part of its broader plan to create a “mega-site” that will consist of up to eight chip factories with a total cost of $100 billion.

The move is expected to add 3,000 new permanent jobs and 7,000 construction jobs within the 1,000-acre big plant in Licking County.

The plan comes as a result of CEO Pat Gelsinger’s drive to expand the company in Europe and the U.S. The semiconductor company wants to step up its game and intensify competition with other chipmakers.

“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’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come. Intel is bringing leading capability and capacity back to the United States to strengthen the global semiconductor industry."

Chipmakers are rushing to increase their output as global manufacturers from numerous sectors continue to face chip shortage challenges.

Furthermore, Intel also wants to become the leading maker of the smallest and fastest chips, a position that currently belongs to Taiwanese manufacturer TSMC.

On the other hand, Intel does not expect that its new plant investments will resolve the current chip shortage and Gelsinger expects the crunch to last into next year as well.

Intel started building two factories in Arizona in September, and the two new plants in Ohio will bring the company’s number of factories at its campus in the Phoenix suburb of Chandler to six.

By Senad Karaahmetovic | [email protected]

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