Chip manufacturer Intel will spend at least $20 billion on a new chip manufacturing site in New Albany, near Columbus, Ohio, the company announced today. The 1,000-acre location will initially play host to two chip factories and is set to directly employ at least 3,000 people and “tens of thousands” more across suppliers and partners. Construction is reportedly due to kick off this year, with the site becoming operational in 2025.
Intel already has US factories across several states including Oregon, New Mexico, and Arizona. Ohio represents its first manufacturing expansion into a new state in over 40 years. Intel has been aggressively ramping up its investments in manufacturing capacity under its new CEO, who’s already announced a $20 billion expansion of the company’s existing Arizona complex.
Intel’s search for its new manufacturing hub reportedly saw states competing for the huge economic opportunity a new plant represents. According to reports, at least one other state offered more subsidies, but Ohio was a better regulatory fit and Intel didn’t want to displace current residents. It’s a marked contrast from Amazon’s hyper-competitive bidding process that eventually awarded a second HQ to New York, which it shelved following backlash from residents and local lawmakers.
The announcement comes as the world continues to grapple with an acute shortage of computer chips that have impacted everyone from games console manufacturers to automakers. The shortage has shed light on the decades-long shift of chip manufacturing from the US and Europe to Asian countries, particularly Taiwan where Taiwan Semiconductor Manufacturing Company (TSMC) is headquartered. To help reverse the shift, the US Senate approved a $52 billion subsidy package for the chip industry last June which would offer grants to companies building new US factories, but it is yet to pass through the House.
Intel’s competitors TSMC and Samsung have announced new US-based manufacturing investments of their own in Arizona and Texas, respectively. But in some officials’ eyes, Intel has the advantage of being a homegrown US company, while TSMC’s proximity to China has worried Pentagon officials.