Intel has announced that it will invest more than $20 billion to build two new factories while also establishing an epicenter for advanced chipmaking in the Midwest. The two new leading-edge chip factories will be located in Ohio and will help boost production to meet critical demand for advanced semiconductors. The current semiconductor chip shortage has impacted many industries, including the automotive (although, Tesla has navigated the shortage with quite a bit of grace).
In addition to the more than $20 billion investment, Intel pledged $100 million towards partnerships with educational institutions to create a pipeline of talent and bolster research programs in the area. The company also shared a rendering that shows early plans for the two processor factories in Ohio.
Impact On The Midwest
This investment is the largest single private-sector investment in Ohio’s history. Intel stated that the initial phase of the project will create 3,000 Intel jobs and 7,000 construction jobs over the course of the build. It will also support tens of thousands of additional local long-term jobs for its partners and suppliers. The site spans almost 1,000 acres just outside of Columbus and can accommodate a total of eight chip factories, also supporting ecosystem partners.
Construction is slated to start in late 2022, and production is planned to come online in 2025 when the two factories will deliver chips using Intel’s most advanced transistor technologies. Along with Intel, Air Products, Applied Materials, LAM Research, and Ultra Clean Technology are planning to set up a physical presence in the region in support of the buildout of the site. Intel senior vice president of Manufacturing, Supply Chain, and Operations Keyvan Esfarjani spoke of the immense impact of the investment.
“The impact of this mega-site investment will be profound. A semiconductor factory is not like other factories. Building this semiconductor mega-site is akin to building a small city, which brings forth a vibrant community of supporting services and suppliers. Ohio is an ideal location for Intel’s U.S. expansion because of its access to top talent, robust existing infrastructure, and long history as a manufacturing powerhouse. The scope and pace of Intel’s expansion in Ohio, however, will depend heavily on funding from the CHIPS Act.”
Intel’s Commitment to The Local Community
Intel expressed its commitment to creating a pipeline of talent from the local community. Its $100 million investment will be over the course of the next decade in partnership with Ohio universities, community colleges, and the U.S. National Science Foundation. Kristina M. Johnson, president of Ohio State University, shared her thoughts about the importance of semiconductors and how the university will be involved from a research perspective, which includes artificial intelligence.
“Semiconductors make almost every facet of modern life possible — from computers and smartphones to cars and appliances — and they played an integral role in the technologies that enabled us to stay connected throughout the pandemic. They will also be integral to a wide range of applications in which Ohio State is actively involved from a research perspective, including artificial intelligence, quantum computing, vaccine development, and more.
“So, it’s a natural fit for Ohio State, along with our fellow institutions of higher education, to partner on this game-changing investment in semiconductor manufacturing. Today’s announcement is significant for Ohio, for Intel, and for the national interest, as we are still in the midst of a global chip shortage. But it also presents a remarkable opportunity for current and future students.
“It will cement Ohio as a top magnet for retaining and attracting a new generation of talent and build on numerous opportunities under development within our state’s colleges and universities, including at Ohio’s innovation districts, which are already taking shape in partnership with JobsOhio.”
Ohio Governor Mike DeWine also shared thoughts about the announcement and how Intel will transform the state for the better.
“Today’s announcement is monumental news for the state of Ohio. Intel’s new facilities will be transformative for our state, creating thousands of good-paying jobs in Ohio manufacturing strategically vital semiconductors, often called ‘chips.’ Advanced manufacturing, research and development, and talent are part of Ohio’s DNA, and we are proud that chips — which power the future — will be made in Ohio, by Ohioans.”
Pat Gelsinger, the CEO of Intel, shared how the investment is showing how Intel is leading the effort to restore the US semiconductor manufacturing leadership.
“Today’s investment marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership. 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. These factories will create a new epicenter for advanced chipmaking in the U.S. that will bolster Intel’s domestic lab-to-fab pipeline and strengthen Ohio’s leadership in research and high tech.”
I like that Intel is going to be supporting the local community with partnerships with colleges to hire locally. I think the announcement brings a touch of hope to the industries feeling the pain of the semiconductor chip shortage. Although, 2025 is quite far off still.
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