Tech giant Intel is making further plans to increase chip production in the US market. With the competition around the sector, China is forming massive collaborations to supply chips natively.
On the other hand, Intel An initial investment of $20 billion will be poured towards making factories in Ohio. The ‘mega-site’ for chips will be one of the largest semiconductor manufacturing plants in the world.
The Santa Clara, Calif-based chipmaker is one of the largest tech companies in the world. Intel makes the best computing chips and has big competitors such as AMD, Huawei, Nvidia. Intel chips are primarily used in consumer-grade electronics, e.g., the desktop computer.
We are in a world that is going through massive chip development, but it is not enough. Autonomous vehicles require powerful chips to perform real-life algorithms from point a to point b. Even that’s not the most exciting part.
Newer devices are brilliant and have chips, making them programable to fit user needs. So, we can safely assume the demand has grown tenfold. But is the supply coping up with the demand?
In a simple answer, it is a big no. We can spectate that by seeing other tech companies trying to acquire chip-related firms such as designers, developers etc. Intel, with its vast wealth, is not going back and sitting on it.
Instead, the company plans to send an initial investment of $20 billion to develop a ‘mega-site’ in Ohio. Currently, Intel supplies 12 per cent of global chips, making them one of the largest chip manufacturers in the world.
CEO Pat Gelsinger said it would gradually become ‘one of the largest semiconductor manufacturing sites in the world’. The $20 billion investment will fund two different chip factories, also known as fabs. Licking County, Ohio, will revive their first set of plans for construction in late 2022.
The manufacturing plant will create new positions for employment, including 3,000 Intel jobs and 7,000 jobs in construction. Intel jobs are high in demand for software developers, hardware designers and developers: in total, a massive ecosystem of experts focusing on next-generation computing chips.
As the plan moves ahead, the construction work will hopefully finish by 2025, when Intel starts producing ‘cutting-edge’ chips to sell on the mass market. The manufacturing capability of the US in the chip sector is quite shaky currently due to its distance from Chinese chips.
Those are for their reason as the country is prioritizing chip dependency. Another fact is security; we’ve seen the US and the UK moving away from Chinese telecommunication and network equipment for protection. This one also has a similar purpose.
Amid global chip shortage and the COVID-19 pandemic holding down production, chip manufacturing globally took a hit. It’s not just designing chips and developing. A lot goes behind the process before it hits the shelf of computing partners. For a product to come to customers hands, each chip has to go under many steps, which is quite tough to maintain with the bit of workforce.
Once the project is complete, it will name Ohio Intel’s first manufacturing location in 40 years. The ‘mega-site’ spans over 1,000 acres in Licking County, Columbus suburb. Pat said ‘Intel’s action will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come.’
Thousands of good-paying jobs will start in Ohio once Intel starts working in the manufacturing plant.; Advance manufacturing, research and development’ will give Ohioan’s power to the future.
Along with the $20 billion initial investment, another $100 million is pledged to build a talent pipeline in the region. With plans to use 100 per cent renewable electricity, environmental concerns are kept throughout the whole building block.