Intel to Invest $20 Billion on New Chip Factories in Ohio

Posted on January 21, 2022 by Paul Thurrott in Hardware, Mobile with 21 Comments

Following a flurry of manufacturing expansion in 2021, Intel today said that it would invest a further $20 billion in Ohio, where it will build two new chip factories. With this announcement, Ohio becomes the home of Intel’s first new manufacturing site location in 40 years, and the microprocessor giant could invest even more in the area in the years ahead.

“Today’s investment marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership,” Intel CEO Pat Gelsinger said. “Intel’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come. Intel is bringing leading capability and capacity back to the United States to strengthen the global semiconductor industry. These factories will create a new epicenter for advanced chipmaking in the U.S. that will bolster Intel’s domestic lab-to-fab pipeline and strengthen Ohio’s leadership in research and high tech.”

Intel has moved quickly to reassert its market power ever since Mr. Gelsinger signed on as CEO in February 2021. As part of his so-called IDM (integrated device manufacturing) 2.0 strategy, Intel first pledged to expand its own manufacturing capabilities in the U.S. and Europe, and it promised that the U.S. could expect two new chip fabrication facilities. It then announced a $3.3 billion expansion of its manufacturing facilities in Rio Rancho, New Mexico in May 2021, and an $80 billion investment in two new chip-making facilities in Europe in September 2021. Gelsinger has also led the charge on modernizing Intel’s product roadmap, which he delivered last July.

As for Ohio, Intel says that the investment will help it meet “the surging demand for advanced semiconductors” that will power a new generation of products as part of that IDM 2.0 strategy. Intel also pledged an additional $100 million toward partnerships with educational institutions to “build a pipeline of talent and bolster research programs in the region.”

The Ohio project is described as the largest single private-sector investment in Ohio history, and the initial phase should create 3,000 Intel jobs and 7,000 construction and will support tens of thousands of additional local long-term jobs. The facility will span almost 1,000 acres in Licking County, outside of Columbus, and the site can support up to 8 chip factories, or fabs. Intel says the site could grow to as much as $100 billion over the next decade, making it one of the largest semiconductor manufacturing sites in the world.

Planning for the first two factories starts immediately, and construction is expected to begin late in 2022. The factories will come online in 2025.

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Comments (21)

21 responses to “Intel to Invest $20 Billion on New Chip Factories in Ohio”

  1. Donte

    #Merica!!!!! I just bought a 12700k for my gaming rig....smoking fast!

  2. Truffles

    Another taxpayer funded boondoggle. The trick is to make the announcement of a new site then defer actual construction until the pressure builds on politicians to handed over the cash:


    “Never let a good crisis go to waste,” Gelsinger told the Wall Street Journal on using national security fears to negotiate subsidies.


    To ratchet up the pressure on US lawmakers, Intel has threatened to scrap plans to build two Arizona chip plants unless Congress passes the CHIPS Act promising $52 billion in subsidies for domestic semiconductor manufacturing. The bill is currently stalled in the House. “We aren’t going to be able to do that without CHIPS funding,” Intel government relations head Al Thompson told Bloomberg.


  3. VTScott

    I live in Columbus, OH and there is lots of joy over the announcement.


    I found the process so drastically different from when Amazon was looking for an HQ2 location. Locally I heard nothing of the negotiations until the days before the announcement.


    Which then made me ask why and I put on my skeptical hat. Columbus was a long shot for HQ2 but I recall hearing alot about tax incentives to lure HQ2 and the impact to the cost of living if Columbus won. I have not heard of any of those discussions related to Intel. This might explain the hush hush nature of the process.


    I'll keep an eye out for is when Intel flexes it's political and social muscle. Intel is making a large initial investment in Ohio and is dangling billions in future investments. Intel will be in a prime position to influence the state.

  4. ernie

    I live in NW Ohio and I'm a retiree, so this does not affect me directly, but I'm glad Intel is investing in the U.S.A. I'm especially glad for my fellow Ohioans who may get work, not only building the new site, but working in the plant after construction is finished.


    In response to Maddycom, I suspect that the fact that Ohio has excellent Highway, rail, and air connections, not only to points all over the U.S.A. but to points the world over may have played a part in Intel's choice, after all, they are investing some $20 BILLION dollars here with the indication that further development may continue into the future. An investment like that doesn't sound as if it could be prompted by freebies or tax incentives. Intel must have high hopes for this new facility, and so do I.


    My2Cents,


    Ernie


  5. mike2thel73

    Hopefully this actually happens. Unlike the conjob that Apple & Foxconn announced a few years ago about opening plants in Wisconsin. I know apple wasn't part of the announcement but I'm sure they played a part in it.

  6. maddycom

    Should have built in Wisconsin FoxConn plant that was never finished had water access to Lake Michigan and land is cleared. Sad Ohio must have opened up free stuff just like Wisconsin mistakenly did in 2017 and got burned.


  7. lvthunder

    I'm glad to see Intel investing in fabrication outside of Asia. Especially in the USA. I think the future for Intel is bright. Looks like this new CEO is going the right things. Hopefully they can get the new facilities built quickly.

  8. Pbike908

    About time companies start investing in America versus using all their cash to buy back their stock.

  9. JH_Radio

    Well the next time I'll need a new PC will be October 2025 as my oldest PC by that point will be from 2011. the newest the Lenovo X1 Carbon, 6th generation. If I could actually run Windows 11 come 2025, I would gladly do so.

    but MS won't let me, so I have no choice but to get new hardware no matter how well everything I have works. My desktop I use is an Intel 5th generation i7, 64GB ram. PcIE Gen 3 2TB SSD for my boot drive.

    But maybe by October, intel will be putting the made in the US label on their PCs.

    I hate throwing away perfectly good working hardwhere!


    • ernie

      That machine doesn't have to be 'thrown away'. Put Linux on it. If nothing else, it can be a local server for your home LAN. I never let aged, but fully functional hardware be wasted. There is always some way to repurpose it. :)

    • Donte

      I have gotten two different 7th gen Intel computers to run Windows 11. A i7-6700 and a i5-7500.


      It is the motherboard in both cases that had TMP 2.0 support. The I5 was in a Dell Optiplex 3050 purchased back in July of 2018.

      • JH_Radio

        Nun of my boards have a TPM chip. I also think i would need to get a new graphics card... GForce G210 is what I'm using now on the desktop.

  10. eric_rasmussen

    My next graphics card? Intel Arc.


    My next CPU? Whatever 7-ish or 9-ish processor is available at the time that the GPU is available.


    I believe strongly in supporting companies that are supporting our local communities. I love that I might be able to buy a CPU with the label "Made in the USA" on it.


    I've done a lot of traveling and I love people from every country, but damn it's about time we make things like this again. 🇺🇸

    • bluvg

      I very much agree with you, but a lot of Intel silicon has long been made in the USA (75% according to Wikipedia)--depending what you mean by "made." There are many, many steps, not all done in the same place; assembly and test is often done elsewhere. I may have missed it, but I didn't see anything in the announcement about whether Ohio will handle processes all the way through to finished product.

  11. straker135

    These investments also have strategic value, for example if the supply of chips from TSMC is threatened for any reason ;-). Always have a Plan B.

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