Intel is making a landmark investment of over $20 billion to establish two state-of-the-art chip factories and a central hub for advanced semiconductor manufacturing in the Midwest, underscoring its commitment to American innovation and supply chain resilience.
This investment will increase production to meet growing semiconductor demand, support new Intel products, and serve foundry customers as part of the IDM 2.0 strategy. Intel will also invest $100 million with local educational institutions to develop talent and strengthen research in the region.
Today’s announcement is monumental news for the state of Ohio, said Ohio Governor Mike DeWine. Intel’s new facilities will be transformative for our state, creating thousands of good-paying jobs in Ohio, manufacturing strategically vital semiconductors, often called CHIPS. Advanced manufacturing research and development, and the talent that drives them, are part of Ohio’s DNA, and we are proud that CHIPS, which power the future, will be made in Ohio by Ohioans.
Today’s investment marks another significant step in Intel’s effort to restore U.S. semiconductor manufacturing leadership, said Pat Gelsinger, Intel’s CEO. Intel’s actions will help build a stronger 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 of advanced chipmaking in the U.S., bolstering Intel’s domestic lab-to-fab pipeline and strengthening Ohio’s leadership in research and high-tech.
The impact of this investment will be substantial for Ohio and the US semiconductor industry.
This historic private investment will initially create 3,000 Intel jobs, 7,000 construction jobs, and aid thousands more through suppliers. The Licking County site can support up to eight factories and, if fully built, could attract up to $100 billion, making Ohio a global semiconductor hub.
Planning for the first two factories will start immediately, with construction in 2022 and chip production targeted for 2025. These will feature advanced transistor technology at Intel’s first US site in four decades.
In addition to Intel’s presence in Ohio, the investment is expected to attract dozens of ecosystem partners and suppliers needed to provide local support for Intel’s operations, from chip manufacturing equipment and materials suppliers to a range of service providers. Investments made by these suppliers will not only benefit Ohio but will have a major economic impact on the wider US semiconductor ecosystem as part of today’s announcement. Air Products, Applied Materials, LAM Research, and Ultra Clean Technology have indicated plans to establish a physical presence in the region to support the site’s build-out, with more companies expected in the future.
The impact of this mega-site investment will be profound, said Keyvan Esfarjani, Intel Senior Vice President of Manufacturing, Supply Chain and Operations. A semiconductor factory is not like other factories. Building this semiconductor mega site is akin to building a small city, which fosters a robust community of supporting services and suppliers. Ohio is an ideal location for Intel’s press expansion because of its access. It has the potential to attract top talent, robust existing infrastructure, and a long history as a manufacturing powerhouse. The scope and pace of Intel’s expansion in Ohio, however, will depend heavily on funding from the CHIPS Act.
To help develop and attract a pipeline of trained talent within the region, Intel plans to invest approximately $100 million over the next decade, partnering with Ohio University’s Community Colleges and the U.S. National Science Foundation. These efforts will include collaborative research and the development of semiconductor-specific curricula for degree programs.
Semiconductors make almost every facet of modern life possible, from computers and smartphones to cars and appliances, and they played an integral role in the technologies that enabled us to stay connected throughout the pandemic, said Christina M. Johnson, president of the Ohio State University. We will also be entitled to a wide range of applications in which Ohio State is actively involved from a research perspective, including:
- Artificial intelligence
- Quantum computing
- Vaccine development
- More
The Ohio State University and partner institutions welcome this pivotal investment, which addresses the global chip shortage, creates educational opportunities, and strengthens Ohio’s position as a leader in talent retention and innovation.
Intel has a long history of corporate responsibility at its current U.S. manufacturing sites and is committed to establishing strong relationships with the community in Licking County and beyond. Intel has a long commitment. The new site will be designed and constructed with green building principles, and the new factories will be powered by 100% renewable electricity and achieve net-positive water and zero total waste sent to landfill, in support of Intel’s 2030 Green Goals.
Intel Foundry Services Momentum
These new factories will not only make Intel’s advanced products but also support the growing demand for Intel Foundry Services (IFS), the company’s new foundry business.
With IFS, Intel is opening its factory doors wide to serve the needs of foundry customers around the globe, many of whom are looking for more geographical balance in the semiconductor supply chain, said Dr. Randeer Thakur, senior vice president and president of Intel Foundry Services. The Ohio factories are designed for the Armstrong Era with support for Intel’s most advanced process technologies, including Intel 18A. These technologies are critical for enabling next-generation foundry customer products across a range of applications, from high-performance mobile to artificial intelligence.
The Ohio site will support advanced process technology for US government security and infrastructure needs, further strengthening the region’s role.
Source: Intel Announces Next US Site with Landmark Investment in Ohio
