Intel announces new microchip plant in Ohio, following similar move in Arizona

·2 min read
The plants, also called fabs, will employ 3,000 workers, and 7,000 construction workers will be needed to build them, Intel said in officially announcing its plans after months-long rumors of a massive economic development project on the horizon.
The plants, also called fabs, will employ 3,000 workers, and 7,000 construction workers will be needed to build them, Intel said in officially announcing its plans after months-long rumors of a massive economic development project on the horizon.

Intel, the world's largest semiconductor manufacturer announced plans Friday to build a new $20 billion factory outside of Columbus, Ohio.

The Ohio project, which will be Intel's first new manufacturing site in 40 years, includes two semiconductor fabrication plants, or what the company calls fabs. It eventually could involve eight factories and $100 billion in investment over the next decade, including Intel and its suppliers and partners.

Construction is expected to start this year, with the first chips being produced by 2025.

The announcement comes about 10 months after the computer chip giant said it would spend $20 billion to build two additional factories in Arizona, a move heralded as the largest private-sector investment in that state's history.

The new factories are being developed at Intel's current campus in Chandler.

Intel’s Ocotillo campus in Chandler is the company’s largest U.S. manufacturing site. Four factories are connected by a mile-long automated superhighway to create a mega-factory network. On March 23, 2021, Intel announced it will invest about $20 billion to build two additional factories at the Ocotillo campus.
Intel’s Ocotillo campus in Chandler is the company’s largest U.S. manufacturing site. Four factories are connected by a mile-long automated superhighway to create a mega-factory network. On March 23, 2021, Intel announced it will invest about $20 billion to build two additional factories at the Ocotillo campus.

Arizona also landed the first U.S. site of Taiwan Semiconductor Manufacturing Co., which is building a $12 billion factory in north Phoenix.

The COVID-19 pandemic has led to a shortage of semiconductor microchips, which power thousands of products such as cars, cell phones, appliances, gaming consoles and medical devices. The shortage depleted vehicle inventory, producing global supply chain issues and increasing consumer prices on automobiles and other goods.

Increasingly, the U.S. has relied on foreign import of computer chips. Currently, 12% of the world's chips are made in the U.S., down from 37% in the 1990s, according to industry officials. About 80% are made in Asia.

The Ohio project, which will be Intel's first new manufacturing site in 40 years, includes two semiconductor fabrication plants, or what the company calls fabs. It eventually could involve eight factories and $100 billion in investment over the next decade, including Intel and its suppliers and partners.

Construction is expected to start this year, with the first chips being produced by 2025.

“Ultimately, we hope to establish the largest semiconductor manufacturing site on the planet,’’ Intel CEO Pat Gelsinger and Senior Vice President Keyvan Esfarjani told Ohio Gov. Mike DeWine and Lt. Gov. Jon Husted in a letter last month.

Since the beginning of 2021, the semiconductor industry has announced $80 billion in new projects in the U.S., according to the White House. The Ohio project is expected to create 3,000 construction jobs and an additional 7,000 construction jobs.

The new factories in Ohio and Arizona come as Congress considers the CHIPS for America Act, which would provide $52 billion to incentivize future semiconductor investments.

This article includes information from USA TODAY reporters Joey Garrison and Mark Williams and Arizona Republic reporter Russ Wiles.

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This article originally appeared on Arizona Republic: New Intel microchip factory in Ohio follows developments in Arizona

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