A gigantic project for Intel which, in Ohio, plans to build the largest electronic chip manufacturing complex in the world. Ten years, 100 billion dollars of investment, eight factories, and several thousand jobs at stake.
$100 billion. This is the sum that Intel says it is ready to invest in the construction of a gigantic semiconductor production site in Ohio, in the United States. A disproportionate project, which could one day house the largest chip manufacturing complex in the world, bringing together eight factories. Pat Gelsinger – founder’s boss – wants to reduce the company’s dependence on Asian semiconductor factories and put the United States back at the heart of the international productive apparatus, in order to face the challenges of tomorrow, including increasingly important chips.
Note that Intel plans to spread these 100 billion euros of investment over ten years at least. Nevertheless, it is already preparing to disburse 20 billion dollars in the first phase of this project, which corresponds to the largest investment ever made in Ohio. On a plot of more than 400 hectares located in New Albany, Intel will therefore undertake the construction of a first factory and announces the creation – in the long term – of 3,000 direct jobs paid, on average, 135,000 dollars per year, and an additional 7,000 in the construction sector. Unfortunately, this project will have no impact on the current chip shortage. It takes several years to build such a factory and equip its production lines, but the shortage we are experiencing today should “last until 2023”, believes Pat Gelsinger.
The Biden administration could come to the aid of founders such as Intel, eager to relocate part of the production of chips on American soil. The President cited Intel’s initiative in Ohio as a model to follow and invited Congress to vote to set up a fund of some $52 billion dedicated to supporting industrial projects in this strategic area. Joe Biden who did not fail to mention competition from China and its monster investments in semiconductors to emphasize the urgency of the situation. And Pat Gelsinger adds that with or without government assistance, this gigantic complex in Ohio will see the light of day. “It just won’t go as fast if we don’t have public aid”, he comments.
For the first time in a very long time, Intel is no longer the world’s leading founder. It ceded its leading position to Samsung Electronics in 2021, with extremely weak growth (0.5%) given the dynamism of the sector.