Intel to build a new $20 billion semiconductor manufacturing facility in Ohio

Vineeth Sharma

Intel , a tech company that makes chips or semiconductors, announced that they are building two new chip manufacturing plants in the U.S. The company was founded on July 15, 1968, and has been a major corporation for chips starting to gain dominance in the 90s. The plant is said to be built in Ohio and will make the state an important hub technologically. This would make Ohio the first location for an Intel manufacturing plant in 40 years. Currently, semiconductors are mainly manufactured and shipped out of Asia, and because of this the tech industry relies heavily on this output for their computers, phones, and other devices. It will also mark a major project that represents the CHIPS and Science Act signed into law by Sen. Maria Cantwell. This project would also bring in a lot of buyers and exports across the globe. Rio Norte’s 7th-grade history teacher Mr. Sheridan says, “I don’t think that

Courtesy of NBC4i

there are many downsides to building a plant here in the U.S. It will create thousands of good paying jobs, and allow the U.S. to take back a piece of the global semiconductor market.” This shows that the plant is expected to do well and seems to have more benefits than downsides. The plant will cover 1,000 acres outside of Licking County in Ohio. The projection is that the building will begin in 2022 and chip production in 2025.

Intel’s CEO, Pat Gelsinger, says that this will create a strong supply of chips or semiconductors for many years. Gelsinger also said that there could be a delay in July if the CHIPS and Science Act wasn’t passed. This bipartisan law gave financial aid of $76 billion to semiconductor production in the US. Shortly after many companies like Intel announced facilities in the US. This will be an epicenter for chip-making and technology and bolster Ohio’s leadership in technological research and production. It will also increase the pace at which research in the laboratories translates into fabrication and production. The number of jobs and income in Ohio will also greatly increase because of the plant. An extra $100 million will be invested into the research programs and uncover talented people in tech to further the advancement of Intel’s semiconductors.

Courtesy of Spectrum News 1

On top of the goal of getting the US back to the top in chip production in the world, they are planning to be powered by 100% renewable energy as well. Environmental preservation is said to be Intel’s main goal when building plants. Gelsinger told Sen. Cantwell that technological industries of the future like autonomous vehicles and A.I. will rely on advanced and quality chips. Samsung has also announced a plan to build a semiconductor plant that could introduce competition. Mr. Sheridan also states “ Samsung already holds a pretty large advantage over Intel as far as market share, and I don’t think that will change. Intel will definitely get the lion’s share in taxpayer subsidies, but as far as revenue, Samsung will dominate.” This statement shows that Samsung is going to still be dominant as on top of this they are also building a plant in the U.S. Intel used to be dominant in the 90s but as other companies started to appear and adapt to the rise of gaming and other interests using computers they lost touch and buyers one

Courtesy of Spectrum News 1

of them being Apple. These chips need to be able to perform the best while using a low amount of energy so they can process highly advanced algorithms. This will make advancements in technology efficient and very resourceful.

There is a downside to this sudden rise in chip production and that is a tech war between chip manufacturers in Asia and the US. China is slowly disengaging tech like chips from other companies around the world. Many companies are selling tech to China and are also thinking of basing their operations outside of the US to escape export control rules. “My guess is that Asian countries and corporations won’t like the idea of the U.S. regaining a portion of the market, and could create restrictions to American investment Asian countries moving forward…” says Mr. Sheridan. He also states there is not much they can do other than create a better tech product or find an opening in the market. This shows that this could yield great results and rival many countries that have been dominant in the chip industry for years. Intel also made a big move to remove references to Xinjiang. The chipmakers faced backlash for forced labor in the region. The suppliers of Intel were told not to use goods from the region which created controversy in the area. Intel later apologized for the statement made about the labor and goods from Xinjiang.

Courtesy of Britannica

In conclusion, Intel is taking a big leap in US technology by building two semiconductor manufacturing plants. They have many goals with this project like using 100% renewable energy and getting the US to the top of chip production in the world. Tech industries in the future will need access to high-quality chips that can compute using a low amount of power and process advanced algorithms. The company could face competition in the US and outside of other countries. Moreover, these plants from Intel will boost the US’s chip production in the world and help provide chips for future technological advancements.