Intel announces $20 billion semiconductor factory in Ohio amid chip shortage




  • In Politics
  • 2022-01-21 10:01:53Z
  • By USA TODAY
 

WASHINGTON - Intel, the world's largest semiconductor manufacturer, is set to announce plans Friday to build a new $20 billion factory outside of Columbus, Ohio, a move President Joe Biden will hail as a major sign of progress of his administration's work to boost U.S. production of the critical microchips.

Biden is expected to make the project, planned for New Albany, Ohio, a focus of remarks Friday morning at the White House touting improvements to supply-chain bottlenecks.

The president will also urge Congress to pass the CHIPS for America Act, which would provide $52 billion to incentivize future semiconductor investments.

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.

'REALLY AWESOME CHRISTMAS PRESENT': Intel picks Greater Columbus for what could be the world's largest semiconductor operation

HISTORIC TURN: Toyota outsells GM for first time - but can it keep the crown once chip shortage ends?

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 billon 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.

Contributing: Mike Williams, The Columbus Dispatch

Follow Joey Garrison on Twitter @joeygarrison.

This article originally appeared on USA TODAY: Intel plans $20 billion semiconductor plant in Ohio amid chip shortage

COMMENTS

More Related News

China blasts US, Japan rhetoric ahead of Quad summit
China blasts US, Japan rhetoric ahead of Quad summit
  • US
  • 2022-05-18 13:29:29Z

Chinese Foreign Minister Wang Yi criticized on Wednesday what he called negative moves by Washington and Tokyo against Beijing ahead of a meeting in Tokyo...

Primaries test Trump
Primaries test Trump's GOP power

The Pennsylvania GOP Senate race remains uncalled, Finland and Sweden apply to join NATO and more news to start your Wednesday.

Pennsylvania GOP Senate race, Finland and Sweden bid to join NATO, formula shortage: 5 things to know Wednesday
Pennsylvania GOP Senate race, Finland and Sweden bid to join NATO, formula shortage: 5 things to know Wednesday

The Pennsylvania GOP Senate race remains uncalled, Finland and Sweden apply to join NATO and more news to start your Wednesday.

Doug Mastriano, Far-Right Election Denier, Wins Pennsylvania Gubernatorial Primary
Doug Mastriano, Far-Right Election Denier, Wins Pennsylvania Gubernatorial Primary

The Christian nationalist who was near the Capitol during the Jan. 6 insurrection was endorsed by former President Donald Trump.

'I know you are worried': Jill Biden speaks on baby formula shortage in new PSA

First lady Jill Biden is speaking out about the nationwide baby formula shortage in a new public service announcement.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Politics