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Intel to Build $20 Billion Chip Making Center in Ohio

In this Oct. 1, 2019, file photo the symbol for Intel appears on a screen at the Nasdaq MarketSite, in New York. (AP Photo/Richard Drew, File)
Intel to Build $20 Billion Chip Making Center in Ohio
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American technology company Intel says it plans to build a $29-billion computer chip manufacturing center in the state of Ohio.

Two chip factories will be built on a 400-hectare site northeast of the city of Columbus, the company announced on January 21.

Building is expected to begin in late 2022 and production is set to start in 2025.

The two factories are expected to create 3,000 company positions and 7,000 building jobs, Intel and local officials said. The center is also expected to support tens of thousands of additional jobs for suppliers and partners.

Intel Chief Executive Officer Pat Gelsinger told Reuters the $20-billion investment could grow to $100 billion and an additional six factories in the future.

Intel’s announcement comes after years of heavy dependence on Asia for the worldwide production of computer chips. The Semiconductor Industry Association says the U.S. share of the worldwide chip manufacturing market has decreased from 37 percent in 1990 to just 12 percent today.

Chip shortages have hurt the ability of American automakers to produce vehicles. The shortages have affected other industries as well.

The United States and Europe are pushing to aggressively increase their ability to produce chips. Several chipmakers last year expressed an interest in expanding their American operations if the U.S. government is able to make it easier to build chip plants.

Chipmakers have reacted by expanding their manufacturing sites to help reduce shortages. Samsung announced in November it plans to build a $17-billion factory near Austin, Texas.

Micron Technology, based in Boise, Idaho, said it will invest $150 billion worldwide over the next 10 years to develop its line of memory chips. It said it could expand manufacturing in the U.S. if it receives tax credits to help make up for higher operating costs in America.

U.S. lawmakers have been urging House and Senate leaders to fully finance a law meant to deal with the semiconductor chip shortage. The $52-billion CHIPS for America Act permits a series of federal investments to support U.S. chip manufacturers.

Separate federal legislation currently being considered would also create a new tax credit for investment in chip manufacturing centers.

I’m Bryan Lynn.

The Associated Press and Reuters reported on this story. Bryan Lynn adapted the reports for VOA Learning English.

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Words in This Story

chip – n. a small piece of semiconducting material used to make parts that help power computer processors

plant – n. a manufacturing center