On Friday, Intel Corp announced, it will invest $20 billion to set up a new chip manufacturing center near Columbus, Ohio which will develop and manufacture advanced semiconductors.
The investment will create at least 3,000 permanent jobs on a 1,000-acre site in New Albany, Ohio.
The development comes at a time when the Biden Administration is pushing “to increase the supply of semiconductors, make more in America, and rebuild our supply chains here at home,” said the White House.
According to sources familiar with the matter at hand, Intel’s CEO Pat Gelsinger is set to make an appearance at the White House with Biden on Friday.
The $20 billion figure is said to be an initial sum, in the first step in a planned eight factory complex costing tens of billions of dollars.
Declining to comment on its plans, Intel said Gelsinger would disclose details if any on Friday of “Intel’s latest plans for investment in manufacturing leadership” as it works “to meet the surging demand for advanced semiconductors.”
The development also marks Intel trying to wrestle back into the top position as a chipmaker from the current leader TSMC which is based out of Taiwan.
In an interview with the Washington Post, Gelsinger said, the complex could cost $100 billion over a decade and eventually is likely to employ 10,000 people.
Gelsinger is also driving Intel to expand, especially in Europe and the United States, as he seeks to heat up competition with global rivals and respond to a worldwide microchip shortage.
Already Intel is in advanced talks with Italy over an estimated $9 billion (8 billion euros) investment to build an advanced semiconductor packaging plant in the country.
The Biden Administration is also pushing to convince the US Congress to approve $52 billion in funding to significantly increase chip production in the country. In June 2021, while the Senate voted 68-32 in favour of the motion, as part of a broader competitiveness bill, it has been stalled in the House.
Intel’s plans for new factories will not immediately alleviate the current demand for chips since such complexes take years to build. Previously, Gelsinger had said he expects the chip shortage to last upto 2023.
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