Intel to invest $20 billion in Ohio chip manufacturing facility

• The project will create 3,000 permanent jobs and 7,000 construction positions

• The mega-site which is around 1,000 acres can house eight “fabs”

Intel Corporation (NASDAQ: INTC) to invest more than $20 billion in the development of two new cutting-edge chip facilities as part of the company's IDM 2.0 strategy, the investment will improve production to satisfy the rising demand for advanced semiconductors. 

The facility would be constructed near Columbus, Ohio. The total investment in the facility might reach $100 billion over the next decade, making it one of the world's largest semiconductor production facilities. 

Throughout the build, the initial phase of the project is planned to create 3,000 permanent jobs and 7,000 construction positions, as well as support tens of thousands of more local long-term jobs.

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The "mega-site," which spans roughly 1,000 acres in Licking County, just outside of Columbus, can house eight chip factories, popularly known as "fabs," as well as support operations and ecosystem partners, the company said. 

“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, in a statement. 

“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.”

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The White House said early Friday that Intel's investment proposal complemented US efforts to enhance local chip production. Governments, notably in the United States and Europe, have been anxious about ensuring their semiconductor supply following years of production shifting to lower-cost Asian nations. The chip shortage during the pandemic has further added to their concerns, WSJ reported. 

Last year, Intel announced significant investments in chip production in Arizona and New Mexico, as well as a $95 billion commitment to European manufacturing.

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The first two plants will be planned immediately, with the building set to begin in late 2022. Production is planned to begin in 2025 when the fab will provide chips employing the most advanced transistor technology. 

Ohio will be the home to Intel's first new manufacturing facility in 40 years.

Moreover, the U.S. Senate authorized $52 billion in financing for semiconductor research and manufacturing last year, however, the law still has to be passed by the House.

Picture Credits: BBC