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, vulnerability to shortages of the crucial components was exposed in the US and Europe as they began to emerge economically from the pandemic.
The US share of the worldwide chip manufacturing market has declined from 37% in 1990 to 12% today, according to the Semiconductor Industry Association, and shortages have become a potential risk.
Two chip factories on the 1,000-acre site in Licking County, just east of Columbus, are expected to create 3,000 company jobs and 7,000 construction jobs, and to support tens of thousands of additional jobs for suppliers and partners, the company and local and state officials announced Friday.
Construction is expected to begin this year, with production coming online at the end of 2025.
Shortages of chips have crimped the ability of US automakers to produce vehicles and last year, General Motors was unseated by Toyota as the nation’s top-selling automaker for the first time.
The US and Europe are pushing to aggressively to build chip making capacity and reduce reliance on producers that are now mostly based in Asia.
Several chipmakers last year signaled an interest in expanding their American operations if the US government is able to make it easier to build chip plants.