Intel is spending $20 billion to build a new chip manufacturing “mega-site”
Intel has announced that it’s investing over $20 billion to build new chip manufacturing facilities in Licking Country, Ohio. Two new factories will be part of a “mega-site” spanning over 1,000 acres of land just outside of Columbus, but that’s just the beginning. Intel says this mega-site can accommodate up to eight of these factories, and the total investment could add up to over $100 billion in the next decade.
For now, Intel has begun planning the first two factories, and construction is expected to begin towards the end of the year. However, production from these factories will likely only begin in 2025, if all goes according to plan.
This is huge news for Intel, which is building its first manufacturing site in 40 years. Last year, Intel laid out its IDM 2.0 plan, in which it made clear that the company wanted to become a powerhouse for chip manufacturing. This was shortly after Pat Gelsinger took the helm as Intel CEO, and the shift in strategy seems to be happening quickly. Intel also committed to more consistent launches for its upcoming product generations.
It’s also good news for the state of Ohio. Intel says the new factories will employ 3,000 Intel jobs and 7,000 construction jobs while they’re being built, plus they’ll “support tends of thousands” of long-term jobs in the area. It’s also expected that the factories will attract more ecosystem partners, with companies like Air Products, Applied Materials, and others announcing plans to establish a presence in the area. Additionally, Intel says it will spend $100 million in community research programs in partnership with universities and community colleges in Ohio.
“The impact of this mega-site investment will be profound,” said Keyvan Esfarjani, Intel senior vice president of Manufacturing, Supply Chain and Operations. “A semiconductor factory is not like other factories. Building this semiconductor mega-site is akin to building a small city, which brings forth a vibrant community of supporting services and suppliers. Ohio is an ideal location for Intel’s U.S. expansion because of its access to top talent, robust existing infrastructure, and long history as a manufacturing powerhouse. The scope and pace of Intel’s expansion in Ohio, however, will depend heavily on funding from the CHIPS Act.”
Intel says these Ohio factories are designed for the Angstrom era. Angstrom is a measurement of size, and one angstrom is one-tenth of a nanometer, which is the unit used most often nowadays. These factories will support the Intel 18A nodes that will launch in early 2025.