Intel builds $20 billion chip factories
By Dele Ojo
Intel has announced its plans for an initial investment of more than $20 billion in the construction of two new leading-edge chip factories in Ohio. The investment will help boost production to meet the surging demand for advanced semiconductors, powering a new generation of innovative products from Intel and serving the needs of foundry customers as part of the company’s IDM 2.0 strategy.
In a statement released recently, the company explained that to support the development of the new site, Intel pledged an additional $100 million toward partnerships with educational institutions to build a pipeline of talent and bolster research programs in the region.
The $20 billion project, it revealed, spans nearly 1,000 acres and is the largest single private-sector investment in Ohio history. Construction is expected to begin in late 2022, with production coming online at the end of 2025.
“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. “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 chip making in the U.S. that will bolster Intel’s domestic lab-to-fab pipeline and strengthen Ohio’s leadership in research and high tech,” the statement said.
The company said planning for the first two factories will start immediately, with construction expected to begin late in 2022, while Production is expected to come online in 2025, when the fab will deliver chips using the industry’s most advanced transistor technologies. Ohio will be home to Intel’s first new manufacturing site location in 40 years.
In addition to Intel’s presence in Ohio, 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. Investments made by these suppliers will not only benefit Ohio but will have a significant economic impact on the broader U.S. semiconductor ecosystem. As part of today’s announcement, Air Products, Applied Materials, LAM Research and Ultra Clean Technology have indicated plans to establish a physical presence in the region to support the buildout of the site, with more companies expected in the future.
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