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Back at the top? Intel’s new $20 billion manufacturing site in Ohio

Intel Expected To Post Favorable Earnings

Key Highlights:

  • Intel will be installing two new manufacturing sites in Ohio.
  • The manufacturing sites will cater to the shortage of semiconductor chips worldwide.
  • This approach will bring back the dominance of Intel in chip-making.

Intel Corp recently announced that the company is planning to invest $20 billion in a manufacturing site near Ohio. This manufacturing site will cater to the rising demand for semiconductor chips on a global scale. The new site will lead to 3,000 permanent jobs and 7,000 construction jobs on the 1,000-acre site in Licking County.

The officials confirmed that Intel is indeed investing in new chip-making sites in Ohio and will be building 2 new plants that will boost the production capacity of semiconductors. This will enable Intel to cater to the global shortage of semiconductors that are used in the production of smartphones and cars.

Pat Gelsinger, the CEO of Intel, has strategized this move to reclaim dominance in the chip manufacturing space. He adds, “These factories will create a new epicenter for advanced chip-making in the U.S. that will bolster Intel’s domestic lab-to-fab pipeline.”

Intel boosting production in America

Gelsinger had previously stated that the chip shortages will last for another year. To alleviate the supply shortage, Intel’s new factories will dramatically increase chip production in America.

The United States currently relies on Asian manufacturing companies for their supply. Thus, this plant is a crucial step in growing America’s domestic chip manufacturing capacity.

In 2021, Samsung Electronics was ranked the top semiconductor vendor pushing Intel to the second position. Intel recorded only 0.5% growth in 2021 thus delivering the lowest growth rate among the other top 25 vendors.

New Investment attracting new partners

Intel’s investment is also leading to several new partners showing their interest alongside attracting semiconductor equipment and materials suppliers. Among these partners, the alleged names are Applied Materials (AMAT.O), Air Products (APD.N), Ultra Clean Technology, and LAM Research (LRCX.O).

The construction of the manufacturing plants will start in late 2022 and production will start by 2025.

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