Amid a global chip shortage that has been exacerbated by the COVID-19 pandemic, Intel announced Friday that it will invest more than $20 billion in two new chip factories in Ohio.
The new investment will significantly expand U.S. manufacturing capabilities for semiconductors, a vital building block needed for computers, smartphones, autos, and much more. Much of the global tech industry currently relies on chip manufacturing out of Asia.
"Today’s investment marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership," Intel's CEO Pat Gelsinger said in a statement Friday.
The project will make Ohio home to Intel's first new manufacturing site location in 40 years.
The California-based tech giant said the project represents the largest single private-sector investment in Ohio history, and is expected to create 3,000 Intel jobs and 7,000 construction jobs over the course of the build. The mega-site will span some 1,000 acres in Licking County, a suburb of Columbus, with construction expected to begin in late 2022 and chip production expected to begin in 2025.
"Intel’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come," Gelsinger added. "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."
Ohio Gov. Mike DeWine said in a statement the announcement is "monumental news for the state of Ohio."
"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,'" DeWine said. "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."
In addition to the initial investment of some $20 billion, Intel pledged an additional $100 million to help "build a pipeline of talent and bolster research programs in the region," according to a company statement.
Intel also said the new factories have the goal to be powered by 100% renewable electricity and place environmental concerns at the fore throughout the building process.
The news of Intel's massive investment in U.S. semiconductor manufacturing comes on the heels of Samsung announcing late last year that it plans to build a $17 billion semiconductor factory in the U.S. just outside of Austin, Texas.