Chip production in the USA: Intel puts 20 billion dollars into two new factories

Intel is building two chip factories in the United States for more than 20 billion US dollars. Production based on state-of-the-art technologies in the facilities in the US state of Ohio is scheduled to begin in 2025, as the semiconductor giant announced on Friday.

In view of the current chip bottlenecks in particular, US politicians have recently increasingly called for semiconductor production to be brought back more strongly into their own country. For decades, chip production has been concentrated primarily in Asia.

According to Intel, Ohio will also be used to produce for the security and infrastructure needs of the USA. The group described the more than 20 billion dollars (17.6 billion euros) as an initial investment.

Wave of billions of investments

Intel is also currently looking for a location for a planned new plant in Europe. The company is currently undergoing a strategic change: instead of just producing its own chips, Intel wants to increasingly act as a contract manufacturer for other providers. The factories in Ohio should also help with this.

The global shortage of chips triggered a wave of billions in investment in capacity expansion. As in the case of Intel, however, it will usually take several years before the new plants can start production.

The bottlenecks were triggered, among other things, by the increased need for notebooks for working and learning from home due to the pandemic. However, some industry insiders argue that the scarcity was already apparent with the accelerated digitization of all areas.

Fierce competition in the market

Intel, long the undisputed leader in the semiconductor industry, has come under increasing pressure in recent years. Problems with the production technology delayed the introduction of a new generation of chips. As a result, smaller rival AMD was able to gain market share.

Apple is also replacing Intel processors in its Mac computers with chips it has developed itself. They are based on the same architecture as the chips in iPhones. Chip rivals such as Qualcomm now want to compete for Intel’s place in Windows PCs in a similar way. (dpa/mer)

Also read:

Semiconductor sales up by a quarter in 2021

Chip supplier ASML earns more than expected

Chip demand gives TSMC record business

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I started to play with tech since middle school. Smart phones, laptops and gadgets are all about my life. Besides, I am also a big fan of Star War. May the force be with you!

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