Intel to invest $1 billion in new chip factory in Ohio, reports

While large-scale semiconductor factories typically evoke the kind of innovation that happens in Japan and Taiwan, residents of Ohio may soon see millions of semiconductors made in their own state.

Although official plans have yet to be confirmed by the company or federal authorities, several Ohio newspapers have reported that Santa Clara, Calif.-based Intel (INTC) – Get Intel Corporation report, which projects the semiconductor market to double to $1 trillion by 2030, is investing $1 billion to build a semiconductor factory in New Albany, Ohio.

Global Flea Shortage

A global shortage of semiconductors, or the silicon chip material that goes into everything from cars to digital cameras, has prevented companies around the world from meeting supply in recent years – companies like Volkswagen VWAGY, Nintendo NTDOY and Apple (AAPL) – Get the Apple Inc. all struggled to get enough semiconductors to meet customer demand for their products in 2021.

Producing this chip requires expensive state-of-the-art infrastructure, so only a few companies currently have the resources to do so. The pressure to increase production and open new factories is strong. In November, Taiwan Semiconductor Manufacturing Company TSMC and Sony Group Corp. SONY have teamed up to build a $7 billion factory in the southwestern city of Kumamoto by 2024.

“Semiconductor demand remained strong and our fabs performed exceptionally well in a very dynamic environment where matched assemblies posed enormous challenges to our customers, and overall industry supply remained very limited,” said Intel CEO Pat Gelsinger when releasing third-quarter results. see you on September 25.

And, he added that “digitization of everything accelerated by the four superpowers of AI, ubiquitous connectivity, edge cloud infrastructure and ubiquitous computing is driving the sustained need for more semiconductors, and the market is expected to double to $1 trillion.) by 2030.”

Intel did not return a request for comment.

The company has four production sites in the United States

A local push to go for national security

The reports come as U.S. lawmakers have also pushed for more local production to avoid being too reliant on Beijing at a time when U.S.-China relations are deteriorating.

While millions of dollars for U.S. semiconductor development have stagnated in recent months, the U.S. House of Representatives bill is expected to advance by the midterm elections.

At Yahoo Finance’s All Markets Summit in October, Gelsinger said it was “an undisputed problem” when asked if too much chip production in the hands of foreign players was a national security risk. .

Taiwanese chipmaker TSMC controls 51% of the global semiconductor market and is, at the moment, the only company capable of making some of the most advanced chips.

According to local reports, the New Albany plant will be located on 3,200 acres of land that has been annexed to Licking County and will be built over a ten-year period. An official commitment to build the factory is expected to come from Intel on Jan. 21 but, if the factory lives up to what is currently being reported, it would be the state’s biggest development since Honda. (HMC) – Get the report from Honda Motor Co. Ltd. opened an automobile plant in Columbus in 1982.

“More confirmation that something big is coming to the New Albany area,” local reporter Karen Kasler wrote on Twitter. “[…] The impact on Ohio’s economy could be enormous.”

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