Intel’s investment is intended to address the global chip shortage severely affecting a wide range of industries.
Intel will announce a $20 billion investment in a new chip manufacturing facility near Columbus, Ohio, to research and produce sophisticated semiconductor chips. Intel will build at least two semiconductor manufacturing factories.
The first step
The first $20 billion investment is the first phase of a multi-billion-dollar eight-factory complex. Intel’s CEO, Patrick Gelsinger, is expected to provide specifics of “Intel’s newest plans for investment in manufacturing leadership” as the business tries “to fulfil the growing demand for sophisticated semiconductors” according to a statement published by the company.
Companies struggle to meet demand
In the face of continued shortages, chipmakers like GlobalFoundries, TSMC, and Samsung are looking to increase output. Intel expected to unveil another US location by the end of the year, Gelsinger said last year, that would eventually house eight chip plants. Over a decade, the facility may cost $100 billion and employ 10,000 workers.
Intel is also looking to establish production facilities in Europe, with negotiations with the Italian government over a $9 billion sophisticated semiconductor packaging factory heating up.
Intel began work on two plants in Arizona in September 2021 to become a significant chip maker for external clients. The $ 20 billion plants will boost Intel’s campus in Phoenix to six facilities.
The shortage will continue
According to Gelsinger, the other plants will not alleviate the existing shortfall, which will continue until 2023.
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