Intel will invest more than $20 billion to build two new factories and to establish a new epicenter for advanced chipmaking in the Midwest.
LICKING COUNTY, Ohio, Jan. 21, 2022 – Intel stated today that it will invest over $20 billion in the development of two new cutting-edge chip facilities in Ohio. As part of Intel’s IDM 2.0 strategy, the investment will assist improve production to satisfy the rising demand for advanced semiconductors, powering a new generation of innovative products from Intel and servicing the demands of foundry customers. Intel has contributed an additional $100 million to help the development of the new location by forming collaborations with educational institutions to generate a talent pipeline and strengthen research programs in the area.
“Today’s announcement is monumental news for the state of Ohio,” said Ohio Gov. Mike DeWine. “Intel’s new facilities will be transformative for our state, creating thousands of good-paying jobs in Ohio manufacturing strategically vital semiconductors, often called ‘chips.’ Advanced manufacturing, research and development, and talent are part of Ohio’s DNA, and we are proud that chips – which power the future – will be made in Ohio, by Ohioans.”
“Today’s investment marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership,” said Pat Gelsinger, CEO of Intel. “Intel’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come. Intel is bringing leading capability and capacity back to the United States to strengthen the global semiconductor industry. These factories will create a new epicenter for advanced chipmaking in the U.S. that will bolster Intel’s domestic lab-to-fab pipeline and strengthen Ohio’s leadership in research and high tech.”
The initial phase of the project, which is the largest single private-sector investment in Ohio history, is expected to create 3,000 Intel jobs and 7,000 construction jobs over the course of construction, as well as support tens of thousands of additional long-term jobs across a broad ecosystem of suppliers and partners. The “mega-site,” which spans over 1,000 acres in Licking County, just outside of Columbus, can house eight chip factories (also known as “fabs”), as well as support operations and ecosystem partners. The overall investment at the facility might reach $100 billion by the end of the decade, making it one of the world’s largest semiconductor manufacturing facilities.
The first two facilities will begin planning immediately, with construction beginning in late 2022. The fab is expected to start producing chips in 2025, employing the most sophisticated transistor technologies in the market. Intel will open its first new manufacturing facility in Ohio in 40 years.
In addition to Intel’s presence in Ohio, the investment is intended to attract dozens of ecosystem partners and suppliers, ranging from semiconductor equipment and materials suppliers to a variety of service providers, to provide local support for Intel’s operations. These vendors’ investments will not only assist Ohio, but will also have a large economic influence on the entire semiconductor ecosystem in the United States. Air Products, Applied Materials, LAM Research, and Ultra Clean Technology have all expressed interest in establishing a physical presence in the region to help with the site’s development, with additional companies expected in the future. (For more information, see the quote sheet that comes with it.)
“The impact of this mega-site investment will be profound,” said Keyvan Esfarjani, Intel senior vice president of Manufacturing, Supply Chain and Operations. “A semiconductor factory is not like other factories. Building this semiconductor mega-site is akin to building a small city, which brings forth a vibrant community of supporting services and suppliers. Ohio is an ideal location for Intel’s U.S. expansion because of its access to top talent, robust existing infrastructure, and long history as a manufacturing powerhouse. The scope and pace of Intel’s expansion in Ohio, however, will depend heavily on funding from the CHIPS Act.”
Intel aims to invest around $100 million over the next decade in conjunction with Ohio universities, community institutions, and the US National Science Foundation to assist build and attracting a pipeline of talented personnel from within the region. These collaborations will include everything from joint research studies to developing semiconductor-specific curricula for associate and bachelor’s degree programs.
“Semiconductors make almost every facet of modern life possible – from computers and smart phones to cars and appliances – and they played an integral role in the technologies that enabled us to stay connected throughout the pandemic,” said Kristina M. Johnson, president of The Ohio State University. “They will also be integral to a wide range of applications in which Ohio State is actively involved from a research perspective, including artificial intelligence, quantum computing, vaccine development and more. So, it’s a natural fit for Ohio State, along with our fellow institutions of higher education, to partner on this game-changing investment in semiconductor manufacturing. Today’s announcement is significant for Ohio, for Intel and for the national interest, as we are still in the midst of a global chip shortage. But it also presents a remarkable opportunity for current and future students. It will cement Ohio as a top magnet for retaining and attracting a new generation of talent and build on numerous opportunities under development within our state’s colleges and universities, including at Ohio’s innovation districts, which are already taking shape in partnership with JobsOhio.”
Intel Foundry Services Momentum:
In addition to providing capacity for Intel’s leading-edge products, these new factories will support growing demand for the company’s new foundry business, Intel Foundry Services (IFS).
“With IFS, Intel is opening its factory doors wide to serve the needs of foundry customers around the globe – many of whom are looking for more geographical balance in the semiconductor supply chain,” said Dr. Randhir Thakur, senior vice president and president of Intel Foundry Services. “The Ohio factories are designed for the ‘Angstrom era,’ with support for Intel’s most advanced process technologies, including Intel 18A. These technologies are critical for enabling next-generation foundry customer products across a range of applications, from high-performance mobile to artificial intelligence.”
The Ohio site will also provide leading-edge process technology to support the U.S. government’s unique security and infrastructure needs.
For more information on Intel’s plans in Ohio and its commitment to the community, visit the Intel Ohio web page.