World’s Largest Chip Plant To Be Built In Ohio

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Intel Corp. is investing close to $100 billion to construct the world’s largest chip-making facility in Ohio, in an effort to boost domestic chip production amidst the ongoing chip shortage.

Chief Executive Officer Pat Gelsinger’s goals to cement Intel’s dominance in the chip sector and reduce America’s reliance on Asian manufacturing hubs, gave way to the planned construction of the Ohio mega facility. 

Gelsinger said that the facility will be built on a 1,000-acre site in New Albany and will create 3,000 jobs. This will be funded with an initial $20 billion investment making it the largest in Ohio. This could expand to $100 billion with eight total fabrication plants.  

However, Intel’s plans for new factories will not solve the current supply shortage, as these facilities take years to build. Gelsinger said he predicts the chip shortage to last well into 2023.

In an effort to ramp up domestic chip production and to compete with China, the Biden government intends to persuade Congress to approve $52 billion in funding subsidy. U.S. President Joe Biden highlighted Intel’s investment at a White House event last Friday with Gelsinger and again reiterated the need for Congress to act on the matter.

“China is doing everything it can to take over the global market so they can try to out compete the rest of us,” Biden said.

Intel began construction of two facilities in Arizona in September. The $20 billion plants will bring the total number of Intel factories at Chandler, Arizona to six.

In addition, Intel’s Ohio plant is expected to attract partners and suppliers such as Air Products, Applied Materials, LAM Research and Ultra Clean Technology. Intel said that these companies have all shown interest in establishing a presence in their future Ohio facility.

Construction of the first two factories is forecasted to start in 2022 and production is scheduled to begin by 2025.

For more information, read the original story in Reuters. 

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