According to several news reports, Intel is planning to invest $20 billion in a new chip manufacturing plant in Ohio, as it attempts to increase domestic production of semiconductors amid global supply chain disruptions and rising demand.
Intel will build a chip-making plant in New Albany, Ohio, on the outskirts of Columbus, according to Time. Official confirmation by Intel was provided.
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According to the news, the first phase of the new complex will include two chip manufacturing facilities and approximately 3,000 direct employees.
The plant, which is expected to be completed in 2025, will have a capacity of 100 megawatts. The plants that produce microchips are anticipated to come online by 2025.
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KEY BACKGROUND
The worldwide semiconductor industry has been severely impacted by the Covid-19 pandemic in recent years, as well as a significant rise in demand for digital items as more individuals work from home.
Taiwan Semiconductor Manufacturing Company (TSMC), which is located near China, produces the majority of cutting-edge computer chips—including Apple, AMD, and Qualcomm—arming some people with concerns. Last year’s CHIPs Act, which would offer $52 billion in tax credits to the semiconductor sector, was passed by the Senate with broad
Intel CEO Pat Gelsinger said in a CNN op-ed in December that the federal package is “not likely to fix today’s chip shortages, but it will be critical to preventing them in the future.”
TANGENT
In order to regain the chips market, Intel has committed more than $100 billion in investments in the past year. Last year, Gelsinger became Intel’s CEO, and his initiatives have been a driving force behind these attempts.
In 2020, Nvidia surpassed Intel to become the most valuable chip manufacturer in the United States. Last year, Samsung surpassed it for quarterly revenue as the country’s leading graphics chipset maker. Intel chips have lost their performance crown to AMD in both the desktop and mobile computing markets over the past several years, owing to extended delays in its cutting-edge manufacturing technology.