Computer giant Intel Friday officially announced its intention to build a multi-billion dollar semiconductor factory in Ohio.
“Intel today announced plans for an initial investment of more than $20 billion in the construction of two new leading-edge chip factories in Ohio,” a corporate press release said. “The investment will help boost production to meet the surging demand for advanced semiconductors, powering a new generation of innovative products from Intel and serving the needs of foundry customers as part of the company’s IDM 2.0 strategy. 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 programs in the region.”
The announcement comes just a week after it was confirmed that a large semiconductor factory would be built in New Albany, part of Jersey Township.
Gov. Mike DeWine (R) celebrated the announcement.
“Today’s announcement is monumental news for the state of Ohio,” he said. “Intel’s new facilities will be transformative for our state, creating thousands of good-paying jobs in Ohio manufacturing strategically vital semiconductors, often called ‘chips.’ Advanced manufacturing, research and development, and talent are part of Ohio’s DNA, and we are proud that chips – which power the future – will be made in Ohio, by Ohioans.”
According to Intel, the company will bring 3,000 jobs to Ohio, and expects that 7,000 construction employees will work to build the factor on a 1,000 acre plot of land. It was previously reported that the project will be completed over a span of 10 years.
“In addition to Intel’s presence in Ohio, the investment is expected to attract dozens of ecosystem partners and suppliers needed to provide local support for Intel’s operations – from semiconductor equipment and materials suppliers to a range of service providers,” the release said. “Investments made by these suppliers will not only benefit Ohio but will have a significant economic impact on the broader U.S. semiconductor ecosystem. As part of today’s announcement, Air Products, Applied Materials, LAM Research and Ultra Clean Technology have indicated plans to establish a physical presence in the region to support the buildout of the site, with more companies expected in the future.”
Semiconductors are used to develop electronic devices like smartphones and computers. Right now, China produces 36 percent of the world’s semiconductors, the most of any country.
“According to the Semiconductor Industry Association (SIA) China invested and plans to invest $150 billion into the production of semiconductors between 2014 and 2030,” The Star reported last week. “In 2020, China accounted for 30 percent to 70 percent of global TV, PC, and mobile phone exports, depending on the product, SIA said. It also ‘consumed one-quarter of all semiconductor-enabled electronics.’”
President Joe Biden also addressed the subject Friday.
“This historic investment for Ohio is, one of the largest investments in semiconductor manufacturing in American history,” he said in a press conference. “A brand new $20 billion campus outside of Columbus, Ohio, 7,000 construction jobs, 3,000 full time jobs – and I was kidding [Intel CEO Pat Gelsinger] earlier today saying I may need a job – and he said ‘Well, it’s not bad. You start at over 100,000 bucks on the line,’ but I gotta get some training.'”
— Bloomberg Quicktake (@Quicktake) January 21, 2022
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