According to a new report, Intel Corp. aims to build the world's largest chip fabrication plant in Ohio as part of its efforts to address supply chain issues and promote important American industries.
On the 1,000-acre site in New Albany, Ohio, the anticipated investment will create 3,000 permanent jobs. Intel will develop at least two semiconductor fabrication units, according to Time magazine, which broke the news.
Intel's action has geopolitical ramifications as well as supply chain effects. Microchips are predominantly manufactured in Taiwan, a territory claimed by China.
They have also been in limited supply during the global health crisis because of high demand and pandemic-related disruptions in manufacturing and labor supply, prompting concerns about how to maintain a constant chip pipeline.
"Our expectation is that this will grow to be the world's largest silicon production location," Intel Chief Executive Officer Pal Gelsinger told Time.
"We were instrumental in establishing Silicon Valley, and now we're doing the Silicon Heartland," Gelsinger explained.
According to the report, the Intel facility would create at least 3,000 jobs and would be the state's greatest private-sector investment. The plant's construction would begin this year and it might be operational by 2025.
Gelsinger unveiled plans last year to restore Intel to its former glory and to construct new chip manufacturing facilities in order to minimize the semiconductor industry's dependency on Asian manufacturers.
Intel's mega-project in Ohio is the company's first industrial expansion in more than 40 years. Intel announced intentions to invest $20 billion in Arizona's chip manufacturing industry and $3.5 billion in New Mexico's chip manufacturing industry.
U.S. President Joe Biden is scheduled to speak Friday about the government's efforts to "expand semiconductor supply, manufacture more in America, and rebuild our supply chains here at home," the White House announced yesterday.
Gelsinger is scheduled to appear alongside Biden at the White House on Friday, sources said. A request for comment from the White House was not returned.
Chipmakers are scrambling to ramp up production following chip shortages experienced by industries worldwide, from automobiles to consumer gadgets.
Intel is also attempting to reclaim its status as the world's smallest and fastest chip manufacturer from current leader TSMC, situated in Taiwan.
The new facility in New Albany is an area noted for its affordable land and housing.
Gelsinger also stated last fall that he intended to reveal another campus location in the United States by the end of the year, which would eventually house eight chip plants.
