Intel to build $20 billion chip manufacturing facility in Columbus, Ohio

midian182

Posts: 7,788   +80
Staff member
In brief: Intel is set to announce plans to build a $20 billion chip manufacturing complex in New Albany, on the outskirts of Columbus, Ohio, as the company looks to lessen US reliance on foreign chipmakers while putting long-term strategies in place to combat the chip shortage.

The Columbus site, part of Intel's IDM 2.0 strategy, will initially consist of two chip factories on the 1,000-acre plot and directly employ 3,000 people. The New York Times writes that it will also create additional jobs in construction and nearby businesses.

Intel said construction on the site would begin this year, and the plant should be operational by 2025. The company has the option to expand to 2,000 acres and up to eight fabs. “Our expectation is that this becomes the largest silicon manufacturing location on the planet,” Intel CEO Pat Gelsinger told Time. “We helped to establish the Silicon Valley,” he said. “Now we’re going to do the Silicon Heartland.”

Gelsinger, who recently proclaimed AMD “is in the rearview mirror” following Alder Lake’s release, has long warned against relying too much on Taiwanese chip manufacturing (TSMC, specifically) in the face of increasing aggression from China in the region. "Beijing sent 27 warplanes to Taiwan's air defense identification zone [...] Does that make you feel more comfortable or less?" he said in December. The CEO has also called for the US government to spend the $52 billion it has set aside for semiconductor funding exclusively on domestic companies.

Intel plans to spend $25 billion to $28 billion on chip manufacturing in 2022 following a huge spending spree. The company broke ground on two advanced chip fabs in Arizona in September; it has invested $7 billion in a new manufacturing center in Malaysia; will invest $3.5 billion in New Mexico operations; and its $7 billion Fab 34 production facility in Ireland got its first equipment last week.

TSMC, which recently reported record profits, said it would spend $44 billion on upgrading capacity in 2022, more than Intel. The Taiwanese firm has reportedly raised customer quotes for its 7nm and 5nm processes for customers, which could see CPU and GPU prices rise, though Intel should be least affected given the company has its own fabs.

Intel confirmed the Ohio plant plans to Time ahead of its official announcement via a webcast taking place at 11:30 am PST today (Friday, January 21).

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Vulcanproject

Posts: 1,506   +2,736
These industries must be preserved inside the United States. Going forward into this century all abilities to design and manufacture cutting edge chips domestically need to be retained. It doesn't matter if the site suffers some overruns and costs more than anticipated. In the long run the reasons to do so will only come increasingly into focus year by year.
 

psycros

Posts: 4,082   +5,618
These industries must be preserved inside the United States. Going forward into this century all abilities to design and manufacture cutting edge chips domestically need to be retained. It doesn't matter if the site suffers some overruns and costs more than anticipated. In the long run the reasons to do so will only come increasingly into focus year by year.

Agreed. There was never any excuse for Wall Street and Washington to let these greedy bean counters send US innovation to Asia. China was never our friend and Big Tech has no choice but to finally acknowledge the monster they helped create. Meanwhile, Biden is actively protecting Chinese spies in our universities and corporations. Investigations of known Chinese IP thieves are being halted without any legitimate reason. But of course we all know the reason.
 

Uncle Al

Posts: 8,675   +7,585
While I agree with the aforementioned statements I would only point out that Ohio is certainly NOT the most beneficial location. High taxes and an expensive labor market make a number of other states more beneficial in the long run. There are several southern markets that offer better opportunities. Sounds like they must have some sweet "inside" deal that isn't being revealed.
 

Digitalzone

Posts: 181   +108
It was nothing less than treason that the US elites shamelessly stripped the country from its chip manufacturing plants and moved them over to China.

Even worse, China was and still is, Communist and a declared enemy of the US as well as the West in general.
What makes an enemy? What does it mean to be the enemy of the US? Just because someone has different views, does it automatically make an enemy?
 

Ludak021

Posts: 678   +504
It was nothing less than treason that the US elites shamelessly stripped the country from its chip manufacturing plants and moved them over to China.

Even worse, China was and still is, Communist and a declared enemy of the US as well as the West in general.

Is that why tech companies leave California and move to Texas or Ohio? I think your problem is much much closer to home than China is.
The other part is jealousy. You are jealous of people that are willing to work 24/7 for far less money then you would consider a pittance. You now call them "thieves". I call them capable and motivated.
 

Achaios

Posts: 356   +969
What makes an enemy? What does it mean to be the enemy of the US? Just because someone has different views, does it automatically make an enemy?

An enemy is someone who methodically and systematically builds an airforce, a navy and naval aviation with the sole purpose in mind to end your armed forces and your naval superiority.

An enemy is someone who methodically and systematically gave troops, ammo and supplies to the Viet Kong & Red Koreans during the Vietnam and Korean Wars in which the US suffered over 100k fatalities.

Even worse for you, this specific enemy is the same nation that produced Sun Tzu and his Art of War which is widely studied in the Red Military of China.

Arming, aiding and abetting such an Enemy is not only stupid, it's a crime and treason.
 

Theinsanegamer

Posts: 3,323   +5,518
What makes an enemy? What does it mean to be the enemy of the US? Just because someone has different views, does it automatically make an enemy?
China is hardly friendly with the west unless ther eis money to be made. They have no love of the west, and have been very vocal about this. Threatening to overrun a US ally militarilly is a pretty big "you are my enemy" declaration.
While I agree with the aforementioned statements I would only point out that Ohio is certainly NOT the most beneficial location. High taxes and an expensive labor market make a number of other states more beneficial in the long run. There are several southern markets that offer better opportunities. Sounds like they must have some sweet "inside" deal that isn't being revealed.
I'm sorry, what? OHIO has high taxes? Etiher you have not been paying attention, or you have just no idea how expensive blue US states are. Look at california, new york, the entire eastern seaboard, illinois, washington, or oregon if you want to see what "high" corporate taxes are.

Ohio never recovered from the one two punch of nafta and 2008. Land is cheap, labor is cheap, plenty of room for expansion. Texas has too much competition right now, nobody else is coming to ohio, intel will have the pick of the litter, so to speak. Dayton has some tech companies already and it wouldnt be too hard for intel to poach some workers to jumpstart their plant.

There are other benefits too, Ohio is a major transportation hub with lines of all the major class 1 railways, I-75, and multiple major airlines. They have this huge resource called lake erie, which with the other 4 great lakes contain 75% of the worlds fresh water. Fabs take TONS of water to run, ohio water is DIRT CHEAP.

I've argued for years that it makes no sense to move away from the great lakes region for anything that requires water. It's so cheap here, yet all these companies pull big brained moves like setting up in the arizona desert instead.
 

trparky

Posts: 1,066   +1,191
I'd go so far as to say that sending manufacturing of any kind to a small portion of the world all in the name of greed is treasonous. The whole world is one disaster away in China away from having the whole modern world collapse.
 

trparky

Posts: 1,066   +1,191
You are jealous of people that are willing to work 24/7 for far less money then you would consider a pittance. You now call them "thieves". I call them capable and motivated.
And I call that slavery, economic slavery. And the worst part of it all, the Chinese people have to put up with it or... else. This is not something that we in the west should be supporting.
 

bandit8623

Posts: 363   +196
These industries must be preserved inside the United States. Going forward into this century all abilities to design and manufacture cutting edge chips domestically need to be retained. It doesn't matter if the site suffers some overruns and costs more than anticipated. In the long run the reasons to do so will only come increasingly into focus year by year.
the problem is big companies in manufacturing have already polluted our own water supply. we better stop this from happening more. these facilities also use a ton of fresh water . we are seeing fresh water draws that are alarming. 3m in minnesota basicly is getting away with murder already
 

Ludak021

Posts: 678   +504
And I call that slavery, economic slavery. And the worst part of it all, the Chinese people have to put up with it or... else. This is not something that we in the west should be supporting.
more and more young Chinese are "lying flat" , so support it or not, prices are going to go up.
I do 100% agree with you.