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

Columbus, Ohio –

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

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 General Motors was named the nation’s best-selling automaker for the first time by Toyota.

The US and Europe are 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. In November, Samsung said it plans to build a $17 billion factory outside Austin, Texas.

Micron Technology, based in Boise, Idaho, said it would invest $150 billion globally over the next decade to develop memory chips, with the ability to expand 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.

Lawmakers have urged House and Senate leaders to fully fund a bill to address the semiconductor chip shortage. 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.

The Intel project is the largest private-sector investment in Ohio’s history, on par with the 1977 agreement that brought Honda to central Ohio, where it now employs more than 14,000 people.

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

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.

According to market analysis from Gartner Inc., Intel is the No. 2 semiconductor manufacturer globally, with sales of $73.1 billion last year, behind South Korea’s Samsung Electronics with $76 billion, according to the analysis. 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 building data centers in the area. .


Seewer reports from Toledo, Ohio. Associated Press journalist Matt O’Brien in Providence, RI, contributed to this report

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