• President Biden will be joined by Intel Chief Executive Pat Gelsinger.
• The first step is to raise $20 billion (approximately Rs. 1,48,850 crore).
• Chipmakers are scrambling to increase production.
According to people briefed on the topic, Intel is expected to announce on Friday that it will invest $20 billion (approximately Rs. 1,48,850 crore) in a vast new production plant outside Columbus, Ohio, to develop and produce sophisticated semiconductor chips. On the 1,000-acre site in New Albany, Ohio, the anticipated investment includes 3,000 permanent jobs.
Intel will develop at least two semiconductor fabrication plants, according to Time magazine, which broke the news first. The White House announced previously that US President Joe Biden would speak on Friday on the US government’s initiatives “to boost the supply of semiconductors, make more in America, and restore our supply chains here at home.”
According to Reuters, Intel Chief Executive Pat Gelsinger will join Biden at the White House on Friday. A request for comment from the White House was not returned. The initial $20 billion (approximately Rs. 1,48,850 crore) is the first step in what might be a multi-billion-dollar complex with eight factories.
Intel declined to comment on its intentions, but said in a statement that Gelsinger would reveal details on “Intel’s latest ambitions for manufacturing leadership” on Friday as the company tries to “meet the rising demand for sophisticated chips.”
Chipmakers are scrambling to increase production as shortages of chips hit manufacturers worldwide, from automobiles to consumer devices. Intel is also attempting to reclaim its advantage as the creator of the smallest and fastest semiconductors from TSMC, a Taiwanese company. Last November, Gelsinger stated that by the end of the year, he would disclose the location of a new US campus that would eventually house eight chip manufacturing.
The structure, he told the Washington Post, could cost $100 billion (approximately Rs. 7,44,125 crore) over ten years and employ 10,000 people. Gelsinger is spearheading Intel’s expansion plans, particularly in Europe and the United States, as the company tries to keep up with global rivals while also responding to a global semiconductor scarcity.
Reuters reported late last year that Intel and Italy were strengthening talks about a potential investment of around EUR 8 billion (roughly Rs. 67,490 crores) in a new advanced semiconductor packaging plant. The Biden administration is working hard to persuade Congress to authorize $52 billion in funding (approximately Rs. 3,86,945 crore) to greatly enhance chip manufacture in the United States.
The chips funding was approved by Senate 68-32 in June as part of a broader competitiveness bill, but it has been blocked in the House. Intel broke ground on two plants in Arizona in September as part of its turnaround plan to become a major chipmaker for external clients. The $20 billion (roughly Rs. 1,48,850 crore) plants will bring Intel’s campus in the Phoenix suburb of Chandler to a total of six factories.
Intel told Time that it looked at 38 locations before settling on New Albany, Ohio, in December. According to Time, Ohio has agreed to spend $1 billion (approximately Rs. 7,440 crores) on infrastructural improvements to help the manufacturing.
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