Intel is scheduled to announce on Friday a commitment of $20 billion to build semiconductor plants outside Columbus, Ohio, thus strengthening local supply chains, according to reports from the White House.
Thursday’s canned US government statement said the effort would create 7,000 construction jobs and 3,000 permanent jobs.
Intel told Time that the money will build at least two semiconductor plants on a 1,000-acre site that could expand to 2,000 acres and eight acres.
The site will be used for research and development, as well as manufacturing, and is set to begin operations by 2025, the news outlet reported.
“We expect this to become the largest silicon manufacturing site on the planet,” Intel CEO Pat Gelsinger said in the interview, which is also the largest private sector investment in Ohio to date.
The US Midwest state, with its low total cost of living and tax incentives, was selected over 38 different locations. Governor Mike DeWine was told of the choice on Christmas Day.
For those tax incentives, Ohio will allocate $1 billion to improving infrastructure and Intel will be eligible for job creation tax credits for up to 30 years.
The Semiconductor Industry Association has long resorted to such tax incentives to “reverse decades of declining chip production in America”.
“The US used to lead the world in global semiconductor manufacturing. But in recent decades, the US has lost its advantage — our share of global semiconductor production has fallen from 37 percent to just 12 percent in the past 30 years,” White said. House in a statement on Thursday canned.
Most of the world’s chip manufacturing has ended up in Asia due to lower labor costs, although there is some hope in the US that the ever-increasing adoption of automation could change that, along with government programs.
Many countries around the world have sought to increase their domestic production of chips, with shortages of semiconductors persisting for several years.
The United States has passed CHIPS to support the country’s domestic production, which invests $52 billion in semiconductor research and manufacturing. The funds are currently on hold, pending legislation from the House of Representatives.
Other semiconductor manufacturers are currently building foundries in the United States. Taiwan Semiconductor Manufacturing Co Ltd (TSMC) has planned to build facilities in Arizona, while Samsung has announced $17 billion worth of semiconductor plants outside Austin, Texas.
There is no official information yet from Intel about its plans in Ohio or what products will be manufactured there. Reg Contact the company and they will update accordingly.
CEO Pat Gelsinger is scheduled to meet with President Joe Biden at the White House today – Friday, January 21.
The White House said Biden would make statements about US government efforts “to increase the supply of semiconductors, achieve more in America, and rebuild our supply chains here at home.” ®