Ohio chip factory: Here's what you need to know about Intel

·3 min read

Ohio has landed its largest economic development project, ever.

Intel is planning to invest $20 billion in Jersey Township, about a half-hour's drive northeast of Columbus on the western edge of Licking County, a source close to the project told The Dispatch.

The project will have 3,000 workers. There also will be thousands of construction jobs and other indirect jobs, including from suppliers that will be want to be near the plant, the source said.

Latest updates on Intel project: What we know about Intel factory coming to Columbus area

Here's what we know about the Silicon Valley semiconductor maker:

What is Intel and what does it do?

Intel is an American manufacturer of semiconductor computer circuits. The company's name comes from "integrated electronics."

Where is Intel located?

Intel is headquartered in Santa Clara, California, and has design, research, development, assembly and testing facilities all over the world, including in Israel, Germany, Poland, India, Malaysia and Vietnam.

How big is the company?

Intel has about 110,600 employees worldwide, according to the company's most recent annual report.

Intel employs more than 53,000 people at U.S.-based innovation hubs in Oregon, Arizona, California, New Mexico and Texas, according to a company factsheet.

Intel in late September broke ground in Arizona on two chip fabrication plants, or "fabs." The $20 billion plants — dubbed Fab 52 and Fab 62 — will bring the total number of Intel factories at its campus in Chandler, Arizona, to six.

What are computer chips?: Why are semiconductors so important?

Who leads Intel?

Pat Gelsinger became chief executive officer of Intel last February, returning to the company where he spent the first three decades of his career.

Gelsinger, 60, left Intel in 2009, spending the last decade as CEO of VMware, a cloud computing company in Silicon Valley. He's pledged to reinvigorate the company’s engineering and manufacturing sectors.

"We're the only remaining leader in this industry on American soil," Intel CEO Pat Gelsinger told an audience of Oregon business leaders in Portland.
"We're the only remaining leader in this industry on American soil," Intel CEO Pat Gelsinger told an audience of Oregon business leaders in Portland.

Gelsinger's pay package includes $1.25 million in base salary, a $1.75 million hiring bonus and an annual bonus valued at $3.4 million, depending on performance.

In addition, Gelsinger stands to receive $100 million in restricted stock – contingent on Intel's performance.

How is Intel doing?

Intel reported revenue of $19.2 billion for the three months that ended Sept. 30, up 5% from the same period in 2020.

Profit rose 60% from the 2020 quarter to $6.8 billion, or $1.67 per share.

Last March, Intel launched what it calls IDM 2.0, an evolution of Intel’s integrated device manufacturing model. Gelsinger announced significant manufacturing expansion plans, starting with an estimated $20 billion investment to build the new factories in Arizona and plans to become a major provider of foundry capacity in the U.S. and Europe.

Beyond the Arizona investment, Gelsinger has said the company wants to create a mini-city that could be a total investment approaching $100 billion.

"We're looking broadly across the U.S. We're saying come one, come all for proposals. This would be a very large site, so six to eight fab modules, and at each of those fab modules, between 10- and $15 billion. It's a project over the next decade on the order of $100 billion of capital, 10,000 direct jobs. 100,000 jobs are created as a result of those 10,000, by our experience. So, essentially, we want to build a little city," he told The Washington Post last August.

Intel is competing with multiple global rivals including Nvidia and Advanced Micro Devices.

Monroe Trombly covers breaking and trending news. Email him at mtrombly@dispatch.com or follow on Twitter @MonroeTrombly.

This article originally appeared on The Columbus Dispatch: Ohio chip factory: What is Intel? How big is it?

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