Intel announces new chipmaking ‘mega-site’ in Ohio
IT giant Intel has announced it will pump $20bn into building a new chip manufacturing site in Ohio as it looks to bolster supply following a global chip shortage brought on by the pandemic.
The California-headquartered firm said that construction for the site would begin later this year, with the plant due to be operational by 2025.
The initial construction phase is expected to generate 3000 jobs in addition to 7000 construction jobs, in a boon to President Biden as he looks to revitalise US manufacturing and domestic supply chains.
In an interview with Time, Intel CEO Pat Gelsinger said there was scope to expand the plant further to become “the largest silicon manufacturing location on the planet,” adding that it could eventually host eight chip factories across 2,000 acres
President Biden cheered the plans for the new site on Friday saying he wanted Congress to pass a bill giving the go-ahead “right away” and doubled-down on the importance of increasing chip production on US soil.
Speaking at an event with the Intel boss, Biden said: “Let’s do it for the sake of our economic competitiveness and our national security,.”
The pandemic-induced global chip shortage has had a crippling effect on the car industry in particular and forced major firms to overhaul their supply structures.
Toyota moved to stockpile chips last year in a bid to stave off the worst impacts of the crisis, but it warned last week it would miss its 9 million vehicle production target as a shortage of semiconductor chips meant it did not have enough to ramp up car output.