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Sunday, May 29, 2022

Intel building $20 billion Ohio computer chip facility amid global shortages

COLUMBUS, Ohio — Intel will invest $20 billion in a new computer chip facility in Ohio amid a global shortage of microprocessors used in everything from phones and cars to video games.

After years of heavy reliance on Asia for the production of computer chips, the US and Europe were exposed to critical component shortages as they began to economically emerge from the pandemic.

According to the Semiconductor Industry Association, the US share of the worldwide chip manufacturing market has declined from 37% in 1990 to 12% today, and shortages pose a potential risk.

The two chip factories on a 1,000-acre site in Lick County, east of Columbus, are expected to create 3,000 company jobs and 7,000 construction jobs, and support thousands of additional jobs for suppliers and partners, the company, and local and state . Officials made the announcement on Friday.

Construction is expected to begin this year, with production going online at the end of 2025.

Chip shortages have curtailed US automakers’ ability to produce vehicles, and last year, General Motors was toppled by Toyota as the country’s best-selling automaker for the first time.

The US and Europe are pushing aggressively to build chip-making capacity and reduce dependence on producers that are now mostly located in Asia.

Most large semiconductor companies rely on chips produced in Asia, particularly Taiwan, which China has long claimed as its territory. According to the SIA, Taiwan leads the world in chipmaking, accounting for 22% of global manufacturing capacity, followed by South Korea with 21% and Japan and mainland China with 15%.

Several chip makers last year indicated interest in expanding their US operations if the US government is able to ease the construction of chip plants.

Chipmakers are diversifying their manufacturing sites in response to the shortage. Samsung said in November that it plans to build a $17 billion factory outside Austin, Texas.

Micron Technology, based in Boise, Idaho, said it will invest $150 billion globally in developing its line of memory chips over the next decade, with potential US manufacturing expansion if tax credits help make up for the high cost of US manufacturing. could.

However, the demand for computer chips continues to grow.

Lawmakers have urged House and Senate leaders to fully fund legislation designed to address semiconductor chip shortages. They want Congress to fully fund the $52 billion Chips for America Act, allowing states to invest in semiconductor factories. Lawmakers say the chip shortage has not only crippled the US economy, but it is creating a vulnerability in the country’s defense system as eight out of every 10 chips are produced in Asia.

Separate federal legislation is also under consideration that would create a new tax credit for investments in semiconductor manufacturing facilities.

Glenn O’Donnell, an analyst at Forrester Research, said shortages during the pandemic highlighted the need for more manufacturing capacity in the US and less reliance on Asia.

“Your two biggest producers are Taiwan and South Korea and both are weak spots on the world stage,” he said.

US Commerce Secretary Gina Raimondo hailed the announcement.

“Intel’s work is essential to our efforts to rebuild America’s chip manufacturing capacity and create well-paying jobs that support a vibrant American economy,” she said.

World Nation News Desk
World Nation News Deskhttps://www.worldnationnews.com
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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