Intel To Spend $20 Billion On Two New Chip Plants In Ohio

Intel (INTC) will invest $20 billion U.S. in two new plants in Ohio to make advanced microchips, the first step towards a “mega-site” that can accommodate eight chip factories costing $100 billion U.S.

The planned investment will create 3,000 permanent jobs and 7,000 construction jobs on the 1,000-acre site in Licking County, just outside of Columbus, Ohio, said Intel in a news release.

Intel is aggressively expanding in Europe and the U.S. as it responds to a worldwide shortage of microchips and semiconductors.

Chipmakers are scrambling to boost output after manufacturers around the world, from automakers to consumer electronics companies, face shortages of chips. Intel is also trying to win back market share from the current global leader Taiwan Semiconductor (TSM).

Last September, Intel broke ground on two new factories in Arizona as part of its plan to become a major manufacturer of microchips for outside customers. The $20 billion plants will bring the total number of Intel factories at its campus in the Phoenix, Arizona to six.

President Joe Biden’s administration wants Congress to approve $52 billion U.S. to expand American semiconductor manufacturing. The Senate passed a measure last June, but it has stalled in the House of Representatives.

Planning for the first two factories in Ohio will begin immediately, with construction expected to start later this year and production to begin in 2025, Intel said.