Confronted with a chip shortage, Intel spends $ 20 billion to build a giant production facility in Ohio

Tram Ho

Intel recently revealed plans to build a giant semiconductor factory in Ohio, a facility that Intel CEO Pat Gelsinger is hoping to become “the largest silicon chip manufacturing site on the planet. ”

The company spent $20 billion to build the facility on a 1,000-acre site in New Albany, located outside of Columbus, Ohio. Intel’s early plans included building two semiconductor fabrication plants on land that could accommodate 3,000 employees. Construction is expected to begin this year, and Intel expects the plants to be operational by 2025.

Intel chi 20 tỷ USD để xây dựng cơ sở sản xuất chip khổng lồ ở Ohio - Ảnh 1.

A Bloomberg report in late 2021 said that the White House urged Intel to reduce chip production in China. The administration has been pushing chip companies in the US to address the ongoing global chip shortage. In return, the companies lobbied the president to fund research and manufacturing of semiconductors.

However, because the construction of new factories will take years, projects like these won’t be able to help address global supply chain shortages anytime soon.

Intel said it looked at 38 different locations in the US for the facility but ultimately chose Ohio, because of all the space it could use. The company does not want to build in places that may cause people to relocate.

Once the build is complete, Intel will use them to manufacture both its own chips and chips for Intel Foundry Services partners. The company announced on-demand production in March 2021, when it revealed it was building two plants in Arizona, which will also cost Intel $20 billion.

According to Gelsinger, Intel has the option to expand the Ohio location up to 2,000 acres and build up to eight factories in the future. “We helped found Silicon Valley,” the CEO told Time. ” We will now form Silicon Heartland.”

Reference: Engadget

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