Global tech company, Intel, to build two new chip factories worth $20 billion in US to confront global shortages and heavy reliance on Asia
Intel will invest $20 billion to build two computer chip factories on a 1,000-acre site in Licking County, Ohio, US.
Existing chip foundries turn out a vast number of custom-designed chips, mostly in Asia. The business is currently dominated by Taiwan Semiconductor Manufacturing Co., or TSMC. “It’s more like a small city supporting a vibrant community of services, suppliers and ancillary businesses. You can think about this as a magnet for the entire tech industry.”President Joe Biden used Intel's Ohio announcement to push a $52 billion bill awaiting House approval that would invest in the chip sector and help ensure more production occurs in the US.
But making more computer chips in the US won’t entirely protect the industry from supply chain disruptions and shortages because the chips still will be sent to Asia for assembling and packaging, said Nina Turner, a research analyst at IDC.