Intel is spending $20 billion to build a massive chip manufacturing facility in Ohio

Intel has revealed its plans to build a massive semiconductor facility in Ohio to Time — which the company’s CEO, Pat Gelsinger, hopes to become “the largest silicon manufacturing site on the planet.” The company is committing $20 billion to build the site on a 1,000-acre site in New Albany, located just outside Columbus, Ohio. Intel’s initial plans include building two semiconductor factories (or fabs) on the property that would employ 3,000 people. Construction on the site is scheduled to begin this year, and Intel expects the factories to be operational by 2025.

ONE Bloomberg A report in late 2021 stated that the White House “strongly discourages” Intel from increasing chip production in China. The government has been pushing for companies to make chips in the US to meet the current global shortage. In turn, companies have been pressuring the president to fund semiconductor research and manufacturing. It’s worth noting, however, that since building new factories takes years, projects like this won’t be able to help solve the supply chain shortage anytime soon.

Intel said it looked at 38 different US locations for the installation, but ended up choosing Ohio because of all the space it could use. The company doesn’t want to build in places where it could displace residents, as that’s what ended Amazon’s plans to build a second headquarters in New York. When the factories are ready, Intel will use them to manufacture its own chips and chips for customers under Intel Foundry Services. The company announced its foundry services when it revealed it is building two factories in Arizona, which will also cost Intel $20 billion, in March 2021.

According to Gelsinger, the chipmaker has the option to expand the Ohio site to 2,000 acres and build up to eight factories in the future. “We helped establish Silicon Valley,” said CEO Time. “Now let’s do Silicon Heartland.”