Intel, an American technology company, has announced plans to build a $29 billion computer chip manufacturing facility in the state of Ohio.
The company announced on January 21 that two chip factories will be built on a 400-hectare site northeast of Columbus.
Construction is expected to begin in late 2022, with production beginning in 2025.
According to Intel and local officials, the two factories will create 3,000 company jobs and 7,000 construction jobs. Tens of thousands of additional jobs for suppliers and partners are also expected as a result of the center.
According to Intel Chief Executive Officer Pat Gelsinger, the $20 billion investment could grow to $100 billion and six additional factories in the future.
Intel’s announcement comes after years of relying heavily on Asia for global computer chip production. According to the Semiconductor Industry Association, the United States’ share of the global chip manufacturing market has dropped from 37% in 1990 to 12% today.
Chip shortages have hampered American automakers’ ability to produce vehicles. Other industries have been impacted by the shortages as well.
The United States and Europe are attempting to aggressively increase their chip manufacturing capacity. Several chipmakers expressed interest in expanding their American operations last year if the US government could make it easier to build chip plants.
Chipmakers have responded by expanding their manufacturing facilities in order to help alleviate shortages. In November, Samsung announced plans to construct a $17 billion factory near Austin, Texas.
Micron Technology, based in Boise, Idaho, announced a $150 billion global investment in memory chip development over the next ten years. It stated that it may expand manufacturing in the United States if it receives tax breaks to help offset higher operating costs in the country.
House and Senate leaders in the United States have been urged to fully fund a bill intended to address the semiconductor chip shortage. The $52 billion CHIPS for America Act authorizes a series of federal investments to assist US chip manufacturers.
Separate federal legislation being considered at the moment would also create a new tax credit for investment in chip manufacturing centers.