Intel to invest $20bn into new chip manufacturing site in Ohio

Investment will ‘help boost production to meet the surging demand for advanced semiconductors’, chip maker says

Intel is to spend $20bn on a brand-new chip manufacturing site in Ohio comprising of two factories to begin with, the company has announced.

The 1,000 acre site in Licking County, just outside of Columbus, can accommodate a total of eight chip fabs and could see the company invest as much as $100bn over the next decade.

Chip shortages have posed significant problems to the tech industry since the start of the pandemic and Intel claims the new investment will "help boost production to meet the surging demand for advanced semiconductors".

"Today's investment marks another significant way Intel is leading the effort to restore US semiconductor manufacturing leadership," said Pat Gelsinger, CEO of Intel.

"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 epicentre for advanced chipmaking in the US that will bolster Intel's domestic lab-to-fab pipeline and strengthen Ohio's leadership in research and high tech."

Gelsinger has previously been vocal of his desire for more chips to be made in America and outside of Asia, labelling the global supply chain as "fragile".

Intel says the initial phase of the project is expected to create 3,000 jobs with the company and construction on the plants set to begin later this year.

"The investment is expected to attract dozens of ecosystem partners and suppliers needed to provide local support for Intel's operations - from semiconductor equipment and materials suppliers to a range of service providers," the company added.

"The impact of this mega-site investment will be profound," said Keyvan Esfarjani, Intel senior vice president of Manufacturing, Supply Chain and Operations.

"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."