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At the groundbreaking of Intel’s new semiconductor factories in Ohio, President Joe Biden said that the company was “going to build the workforce of the future” right in the state of Ohio. So how is an industry like chips — that’s long been dominated by Asia-based manufacturers — finding its place again in the U.S.?
Intel is building what it calls the “largest silicon manufacturing location on the planet,” and while the case for a factory could have easily been made based on U.S. market demand, it was the more recent passage of the CHIPS and Science Act that made American production of these goods a reality.
The legislation provides semiconductor firms like Intel with $52 billion in funding, and the thrust of this support encouraged the company to move forward with ambitious projects like the one in Ohio, where Intel plans to initially invest $20 billion in two plants over 1,000 acres. The plans will allow Intel to manufacture a variety of chip types as market needs change. Overall, it says it may invest up to $100 billion over time.
The company has a vested interest in dominating the chip market — especially since it ceded the #1 vendor spot to Samsung last year. It also hopes to grow the market here, an interest it shares with the U.S., as chip shortages heavily impacted American customers due to the global supply chain with an emphasis overseas.
Overall, the company needs about 7,000 workers to achieve its goals, and the biggest challenge for Intel might actually be filling those positions. Earlier this year, Intel’s general manager of Manufacturing, Supply Chain, and Operations Keyvan Esfarjani told TechCrunch that the Columbus, Ohio region was “a great place for diverse talent.” To boot, the company’s estimated annual salary for the jobs created is more than double that of the region’s average. And since these compounds take years to build, with full capacity due in 2025, the jobs won’t be needed all at once.
In the meantime, the contribution of this massive campus may boost Columbus’s reputation as a burgeoning tech hub — complete with the high-skilled, high-paying jobs that go along with it. Says Esfarjani, “A project like this has a multiplier effect in the community and the economy.”
Image Credit: TIU
