Intel announced on Friday that it invests up to $100 billion (approximately Rs. 7,44,200 crore) in the Ohio factory. This investment is made to improve capacity as a worldwide semiconductor shortage impacts everything from smartphones to autos.
The move is part of Intel CEO Pat Gelsinger’s effort to reclaim the company’s chip-making prowess and diminish America’s reliance on Asian manufacturing centers, which have a stranglehold on the market.
According to Gelsinger, a $20 billion investment on a 1,000-acre property in New Albany, the largest in Ohio’s history, will create 3,000 employment. He told Reuters that the investment rises to $100 billion with eight total manufacturing factories. it makes it the best investment in Ohio history.
He predicted that the silicon heartland has become “the world’s largest semiconductor manufacturing site.” While chipmakers scramble to increase production, Intel’s plans for additional plants will not solve the present supply shortage since such complexes take years to construct. On Friday, Gelsinger maintained that he expects chip shortages to last until 2023.
Speaker of the House of Representatives Nancy Pelosi announced on Friday that a bill on competitiveness will get introduced shortly to assist boost semiconductor investment and supply chains. That includes the $52 billion in investment.
On Friday, during a White House event with Gelsinger, US President Joe Biden praised Intel’s initiative and urged Congress to act.
“China is doing all it can to seize control of the global market to compete with the rest of us,” Biden added. The present semiconductor supply chain, according to US Commerce Secretary Gina Raimondo, is far too dependent on circumstances and nations halfway around the world.
According to Gelsinger, “The Ohio site will still get launched. But t just won’t happen as rapidly, and it won’t become as large as soon, without government assistance.”
Intel began construction on two plants in Arizona in September as part of its recovery strategy. The $20 billion facilities will raise Intel’s total number of factories in Chandler and Arizona to six.
Gelsinger told Reuters he is hoping to announce another major manufacturing site in Europe in the coming months. “We still have years in front of us before we’re even having a semblance of supply-demand balance,” said Gelsinger.
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