Intel to invest 20 billion dollar on 2 new chip factories in US

Chip-maker Intel on Friday said it will invest more than $20 billion to build two new factories in the US for advanced chip-making, as the world grapples with semiconductor shortage.

The initial phase of the project in New Albany near Columbus, Ohio, is expected to create 3,000 Intel jobs and 7,000 construction jobs over the course of the build, and to support tens of thousands of additional local long-term jobs across a broad ecosystem of suppliers and partners.

“Intel’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come,” said Pat Gelsinger, CEO of Intel. “These factories will create a new epicentre for advanced chip-making in the US that will bolster Intel’s domestic lab-to-fab pipeline and strengthen Ohio’s leadership in research and high tech,” he added. 

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 programmes in the region. 

At full build-out, the total investment in the site could grow to as much as $100 bn over the next decade, making it one of the largest semi-conductor manufacturing sites in the world.

Planning for the first two factories will start immediately, with construction expected to begin late in 2022. Production is expected to come online in 2025, when the fab will deliver chips using the industry’s most advanced transistor technologies. Spanning nearly 1,000 acres, the “mega-site” can house eight chip factories – also known as “fabs” – and support operations and ecosystem partners.