Intel To Invest $20B In New Semiconductor Manufacturing Campus

Tech giant Intel Corp. has unveiled plans to invest at least $20B to develop two new semiconductor production facilities in the Columbus, Ohio, metro area.

Intel has left the door open for additional chip factories after the first two. Eventually, the 1,000-acre Licking County campus could hold a total of eight factories, according to the company, representing as much as a $100B investment in what would be one of the largest chipmaking sites in the world.

The first two factories would create around 3,000 Intel jobs, along with about 7,000 construction jobs over the course of the build. The company didn't release a precise timetable for the full build-out, though it did say that it would be "over the next decade."

Planning for the first two factories is already underway, with construction expected to begin late in 2022. Production is slated to begin in 2025.

The Ohio location won out over 40 or so other sites nationwide, in part by offering a massive space with room for expansion, infrastructure upgrades and other incentives, Intel CEO Pat Gelsinger told The Wall Street Journal.

Other companies have announced plans to locate offices or facilities near the new Intel factories as well. So far they include Air Products, Applied Materials and Lam Research Corp.

Intel is looking to take advantage of the heightened demand for semiconductors that has been a factor in the recent global shortage of chips. The Ohio location also means that the company, and the U.S. market, would be less reliant on overseas locations that are subject to the kind of logistics disruptions seen in recent years.

“Intel’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come," Gelsinger said in a statement. "Intel is bringing leading capability and capacity back to the United States to strengthen the global semiconductor industry."

Last year, Intel pledged $20B to expand facilities in Arizona and $3.5B to do so in New Mexico.

Intel is hardly alone in its efforts to expand U.S. chip production.

Semiconductor giant Micron Technology is considering Central Texas as a location for a new chipmaking facility. Last year, Samsung said it was investing in facilities in Taylor, Texas, and in 2020, Taiwan Semiconductor Manufacturing Co., the largest chip producer in the world, unveiled plans for a $12B chip factory near Phoenix.