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Intel builds $20 billion chip facility in Ohio amid global shortage

COLUMBUS, Ohio – Intel will invest $20 billion in a new computer chip facility in Ohio amid a global shortage of microprocessors used in everything from phones to cars to video games .

After years of heavy reliance on Asia for computer chip production, the risk of shortages of key components has revealed itself in the US and Europe as they begin to emerge economically from the pandemic.

According to the Semiconductor Industry Association, the United States’ share of the worldwide chip manufacturing market has fallen from 37% in 1990 to 12% today, and shortages have become a potential threat. hidden.

The two chip factories on 1,000 acres of land in Licking County, just east of Columbus, are expected to create 3,000 jobs for the company and 7,000 in the construction sector, while supporting thousands of businesses. Tens of thousands of additional jobs for suppliers and partners, companies as well as local and state officials announced Friday.

Construction is expected to begin this year, with production online by the end of 2025.

Chip shortages have limited US automakers’ ability to produce vehicles, and last year, Synthetic engine to be not covered by Toyota was the nation’s best-selling automaker for the first time.

United States and Europe is pushing hard to increase chip production capacity and reduce reliance on manufacturers currently mainly based in Asia.

Last year, several chipmakers signaled interest in expanding their operations in the US if the US government could make it easier to build chip factories.

Chipmakers are diversifying their production sites to meet shortages. Samsung said in November it plans to build a $17 billion factory suburb of Austin, Texas.

Micron Technology, based in Boise, Idaho, said it will invest $150 billion globally over the next decade in memory chip development, with the possibility of expanding production in the US if the tax credits are available. could help offset higher US production costs.

However, the demand for computer chips continues to grow.

Law makers urged House and Senate leaders to fully fund a law aimed at solving semiconductors lack of chips. They want Congress to fully fund the $52 billion CHIPS for America Act, which would authorize state investment in semiconductor plants. Legislators said the chip shortage would not only hurt the US economy, but also create holes in the country’s defense system because eight out of every 10 chips are made in Asia. legislators said.

Separate federal legislation is also under consideration that would create a new tax credit for investments in semiconductor manufacturing facilities.

US Secretary of Commerce Gina Raimondo welcomed the announcement.

“Intel’s work is essential to our efforts to rebuild America’s chip manufacturing capacity and create the kinds of high-paying jobs to support a vibrant American economy,” she said.

Project Intel is the largest private sector investment in Ohio’s history, equaling a deal in 1977 that brought Honda’s motobike to central Ohio, which now employs more than 14,000 people. Ohio Governor Mike DeWine said Intel jobs are expected to pay an average of $135,000 a year plus benefits, with the project adding $2.8 billion to gross domestic product. state year.

“The new Intel facilities will transform our state, creating thousands of high-paying jobs in Ohio,” DeWine said.

Intel, based in Santa Clara, California, announced plans to spend $20 billion last year on two new plants in Arizona. It is also calling for European subsidies to build a major factory somewhere in the European Union and last month said it would invest $7.1 billion to expand its manufacturing operations over the decades. century in Malaysia, where about 10% of the company’s global workforce is located. Along with the US and Malaysia, Intel also has existing factories in Ireland, Israel, Vietnam and China.

Intel is the number 2 The global semiconductor maker, with sales of $73.1 billion last year, trails South Korea’s Samsung Electronics with $76 billion, according to market analysis from Gartner Inc.

Central Ohio, long known for its white-collar workforce, has added high-tech jobs in recent years, with Amazon, Facebook and Google all data centers under construction in the region.

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