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Intel builds $ 20 billion ohio chip facility in global shortage | WGN Radio 720

Columbus, Ohio (AP) — Intel invests $ 20 billion in a new computer chip facility in Ohio amid a global shortage of microprocessors for everything from phones and cars to video games. To do.

According to the Semiconductor Industry Association, the US share of the global chip manufacturing market has fallen from 37% in 1990 to 12% today, making shortages a potential risk.

Two chip factories on 1,000 acres in Licking County, just east of Columbus, create 3,000 corporate jobs and 7,000 construction jobs, creating tens of thousands of additional jobs for suppliers and partners, businesses, local and state authorities. Expected to support. It was announced on Friday.

This is Ohio’s largest single private investment in history, comparable to the agreement that brought Honda to central Ohio in 1977 and currently employs more than 14,000 people.

Construction will begin later next year and production will be online by the end of 2025.

“Intel’s new facility will transform our state and create thousands of high-paying jobs in Ohio, which manufactures strategically important semiconductors,” Ohio Governor Mike Dewein prepares. Said in a statement made.

Based in Santa Clara, California, Intel last year announced plans to spend $ 20 billion on two new plants in Arizona. It also proposes a European subsidy to build a large factory somewhere in the European Union, manufactured decades ago in Malaysia, where about 10% of the company’s global workforce lives last month. Announced that it will invest $ 7.1 billion to expand its business. In addition to the United States and Malaysia, Intel has existing factories in Ireland, Israel, Vietnam and China.

Labor shortage

According to market analysis by Gartner Inc., Intel is the world’s second-largest semiconductor maker, with last year’s sales of $ 73.1 billion, second only to South Korea’s global leader Samsung Electronics’ $ 76 billion.

Last year, several chip makers expressed interest in expanding their business in the United States if the US government could facilitate the construction of chip plants.

Chip manufacturers are currently diversifying their manufacturing bases in response to shortages. Samsung said in November that it plans to build a $ 17 billion factory outside Austin, Texas.

Boise, Idaho-based Micron Technology will be able to expand U.S. production if it can invest $ 150 billion globally in memory chip development over the next decade and tax credits can offset rising U.S. manufacturing costs. Said there was sex.

Industry watchers expect demand for chips to increase as more electronics need them, even if the current shortage is resolved.

Parliamentarians have urged House and Senate leaders to fully fund legislation aimed at addressing the shortage of semiconductor chips. They hope Congress will fully fund $ 52 billion in CHIPS for US law, allowing state investment in semiconductor factories. Not only has the chip shortage disrupted the US economy, but eight out of ten chips are produced in Asia, creating a vulnerability in the defense system, lawmakers said.

Individual federal law is also under consideration and a new tax credit will be created for investments in semiconductor manufacturing facilities.

Long-known primarily for its white-collar workforce, Central Ohio has added tech jobs in recent years, with Amazon, Facebook, and Google all building data centers in the region.

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Seewer reported from Toledo, Ohio. Matt O’Brien, Associated Press Writer, Providence, Rhode Island, contributed to this report.

Intel builds $ 20 billion ohio chip facility in global shortage | WGN Radio 720

Source link Intel builds $ 20 billion ohio chip facility in global shortage | WGN Radio 720

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