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Intel to build two new chip factories in Ohio by 2025

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Commerce Secretary Gina Raimondo said Intel's investment is critical to strengthening the US economy and supply chains.

Intel to build two new chip factories in Ohio by 2025

Intel is investing more than $20 billion to build two semiconductor chip manufacturing plants near Columbus, Ohio, expected to start production in 2025, to boost domestic production amid growing demand and supply shortages, the company said 21 January.

"Today's investment marks another important way in which Intel will lead efforts to reclaim its leadership in US semiconductor manufacturing," CEO Pat Gelsinger said in a statement. Construction of two processor factories in Licking County is scheduled to begin by the end of the year.

The semiconductor manufacturer said the factories will be its first new production site in 40 years and will produce a variety of chips for several industries.

The Ohio site will be ready to potentially host up to eight chip factories with a final investment of $100 billion over the next decade, Intel says, adding that such an investment would make the site one of the largest in the world.

However, the scale and pace of Intel's expansion in Ohio will depend heavily on funding from the Chip Act," said Keyvan Esfarjan, senior vice president of manufacturing, supply chain and operations.

The CHIPS Act for the Americas is to allocate $52 billion to encourage investment in domestic semiconductor manufacturing. Funding for the Chip Act is linked to the U.S. Innovation and Competition Act, which was passed by the Senate in June 2021. The Biden administration is now working with the U.S. House and Senate to finalize legislation for CHIP and USICA. The semiconductor shortage has had a marked impact on the global auto industry, as major automakers have announced permanent production cuts in 2021 due to lack of chip shipments.

"According to experts, the global shortage of chips reduced the gross domestic product of the United States last year by a full percentage point," the White House said in a statement. "U.S. auto workers have faced layoffs and production shutdowns due to pandemic-induced disruptions at Asian semiconductor plants, driving car prices up significantly for U.S. consumers."

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