Over the past year or so, the semiconductor chip shortage has had a tremendous impact on automotive production, leading to declining inventory, rising prices, and big headaches for automakers and customers alike. Making matters worse, no one really knows when this complex problem will go away, even though existing chipmakers are working hard to expand production while a number of companies are in the process of building chip plants in the U.S. That includes Intel, which makes chips for a number of other consumer products, which just announced plans to build a $20 billion dollar chip fabrication complex in Licking County, just outside of Columbus.
The complex will contain not one, but two chip factories, both of which are being built with the sole purpose of boosting U.S. chip production. As a whole, the project represents the largest single private-sector investment in Ohio’s history and is expected to create 7,000 construction jobs and 3,000 Intel-based jobs while it’s being built and when the complex officially opens.
“Today’s investment marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership,” said Pat Gelsinger, CEO of Intel. “Intel’s actions will help build a more resilient 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 for advanced chipmaking in the U.S. that will bolster Intel’s domestic lab-to-fab pipeline and strengthen Ohio’s leadership in research and high tech.”
Planning for the new chip complex is already underway, with construction expected to begin later this year. Production is expected to follow in 2025, but Intel also plans on continuing to invest in the 1,000-acre site, sinking a total of $100 billion into it over the next decade as it aims to create one of the largest semiconductor manufacturing sites in the world.