Intel Plans to Boost Chip Production With Two New Plants

WASHINGTON/SAN FRANCISCO: Intel Corp mentioned on Friday it could make investments greater than $20 billion in two new chip-making vegetation in Ohio, because it appears to be like to spice up its manufacturing capability amid a worldwide scarcity of semiconductors which can be utilized in all the pieces from smartphones to automobiles .

The transfer is a part of Chief Executive Officer Pat Gelsinger’s technique to revive Intel’s dominance in chip making and scale back America’s reliance on Asian manufacturing hubs, which have a vice-like grip available on the market.

“These factories will create a new epicenter for advanced chipmaking in the US that will bolster Intel’s domestic lab-to-fab pipeline,” Gelsinger mentioned in an announcement.

While chipmakers are scrambling to spice up output, Intel’s plans for brand new factories is not going to alleviate the present provide crunch, as a result of such complexes take years to construct. Gelsinger beforehand mentioned he anticipated the chip shortages to final into 2023.

To dramatically improve chip manufacturing within the United States, the Biden administration is making a giant push to persuade Congress to approve $52 billion in funding.

“This project is a crucial step in growing America’s domestic chip manufacturing capacity,” Deputy Secretary of Commerce Don Graves mentioned in a separate assertion, referring to Intel’s announcement. Gelsinger will meet with Biden on the White House in a while Friday, Intel mentioned.

Intel misplaced out to Samsung Electronics Co Ltd as a high semiconductor vendor in 2021 and it dropped to the second spot with 0.5% development final yr, delivering the bottom development price among the many high 25 distributors, knowledge from Gartner confirmed.

As a part of its turnaround plan to develop into a serious producer of chips for outdoor clients, Intel broke floor on two factories in Arizona in September. The $20 billion vegetation will convey the whole variety of Intel factories at its campus within the Phoenix suburb of Chandler to 6.

The deliberate funding in Ohio in what may very well be an eight-factory advanced will price tens of billions of {dollars} and create 3,000 everlasting jobs and seven,000 development jobs on the 1,000-acre web site in Licking County, simply exterior of Columbus.

Intel’s new funding is predicted to draw companions and semiconductor tools and supplies suppliers.

Air Products, Applied Materials, LAM Research and Ultra Clean Technology have proven curiosity in establishing a presence within the area, Intel mentioned.

Planning for the primary two factories will begin instantly, with development anticipated to start late in 2022 and manufacturing beginning in 2025.

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