A worldwide scarcity of semiconductors is affecting everything from smartphones to vehicles, and Intel Corp. said on Friday that it will spend up to $100 billion to develop what may be the world’s biggest chip-making facility in Ohio.
Chip-making primacy has been lost in recent years, and Intel CEO Pat Gelsinger is working to regain it, as well as reducing America’s dependence on Asian manufacturing centres, which have a stranglehold on the global market.
3,000 jobs will be created by a $20 billion investment on a 1,000-acre site in New Albany, the biggest in Ohio’s history, Gelsinger said. The entire investment in Ohio might reach $100 billion if there are eight total fabrication sites, he told Reuters.
He predicted it may grow to be “the world’s biggest semiconductor production site,” earning the moniker “the silicon heartland.”
This supply crisis will not be alleviated despite Intel’s intentions to build additional plants, since these complexes take years to construct.
Chip shortages, Gelsinger said again on Friday, might last until 2023.
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Pelosi said on Friday that Congress will submit a measure on competitiveness to support semiconductor investment and supply chains. Inclusion of the $52 billion in financing is a given.
While speaking with Intel CEO Pat Gelsinger Friday at the White House, US President Joe Biden lauded Intel’s contribution and reiterated the need for Congress to step in to act.
According to Vice President Joe Biden, “China is trying all it can to take over the global market so that they can attempt to outcompete the rest of us.
“Far too reliant on circumstances and nations halfway across the globe,” Gina Raimondo, the U.S. Commerce Secretary, said at the event.
With no government financing, Gelsinger said “The Ohio site is still going to be launched. It won’t happen as rapidly, and it won’t get as large as soon.”
FAMINE AND FEAST OF THE CHIP
Samsung Electronics Co Ltd (005930.KS) overtook Intel as the world’s leading semiconductor vendor in 2021, with a growth rate of only 0.5 percent, the lowest in the top 25, according to Gartner.
Intel began construction on two Arizona plants in September as part of its recovery strategy to become a major chip maker for external clients. There will be six Intel facilities in Chandler, Arizona, thanks to the new $20 billion plants.
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A new large production facility in Europe, according to Gelsinger, will be announced in the coming months, according to Reuters.
Intel isn’t the only company increasing its investments. Also announcing large-scale investment intentions in the United States are Samsung Electronics and Taiwan Semiconductor Manufacturing Co. As a result, doubts are being raised concerning a chip oversupply in the future.
As Gelsinger said, “we still have years in front of us before we even get a semblance of supply-demand equilibrium”. Inquire about the parts of your life that aren’t becoming digital.
“Yes, the semiconductor business is developing, and maybe the metaverse will address the problem of global semiconductor shortages. However, a huge bubble is about to pop “Gartner analyst Alan Priestley echoed same sentiments.
Suppliers and partners are likely to follow Intel’s investment in Ohio, which is located in the state’s capital. There is interest in setting up shop in the area from the likes of Air Products, Applied Materials, LAM Research and Ultra Clean Technology.
First production is planned to begin late in 2022, with the first two facilities projected to be operational by 2025.