Friday, January 21st 2022

Intel Reveals Plans for US$20 Billion Chip Fab in Ohio

Rather unusually, Intel announced its latest chip fab plans not via a press release, but via an exclusive article in TIME magazine. It seems like an unusual strategy, as these kinds of things are normally not announced in this kind of fashion, especially as TIME doesn't exactly have close ties with Intel, nor the semiconductor industry as a whole, but maybe this is Intel's new way of trying to change the image of the company. Either which way, Intel is apparently planning on building no less than two fabs on the 1,000 acre (~4 square kilometer) site in New Albany, Ohio, which should be the workplace of some 3,000 people once it stands ready in 2025.

The article quotes Pat Gelsinger saying "Our expectation is that this becomes the largest silicon manufacturing location on the planet," as Intel has the option to double the land for its new fab site and apparently has plans for as many as eight fabs at the location. Additional fabs obviously depends on demand and crucially if Intel manages to full off its contract foundry business, since without it, it seems unlikely that Intel is going to need the additional six fabs in the foreseeable future, especially as Intel is in the final stages of finishing its new fab in Ireland, while also planning to announce a location for yet another fab somewhere in Europe and let's not forget Arizona. The TIME article goes into a lot more details as to what the new fabs mean for Ohio, but doesn't go into much more detail about Intel's plans for its future fabs there.

Update: Official press release below.
Intel Announces Next US Site with Landmark Investment in Ohio

Intel today announced plans for an initial investment of more than $20 billion in the construction of two new leading-edge chip factories in Ohio. The investment will help boost production to meet the surging demand for advanced semiconductors, powering a new generation of innovative products from Intel and serving the needs of foundry customers as part of the company's IDM 2.0 strategy. To support the development of the new site, Intel pledged an additional $100 million toward partnerships with educational institutions to build a pipeline of talent and bolster research programs in the region.

"Today's announcement is monumental news for the state of Ohio," said Ohio Gov. Mike DeWine. "Intel's new facilities will be transformative for our state, creating thousands of good-paying jobs in Ohio manufacturing strategically vital semiconductors, often called 'chips.' Advanced manufacturing, research and development, and talent are part of Ohio's DNA, and we are proud that chips - which power the future - will be made in Ohio, by Ohioans."

"Today's investment marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership," said Pat Gelsinger, CEO of Intel. "Intel's actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come. Intel is bringing leading capability and capacity back to the United States to strengthen the global semiconductor industry. These factories will create a new epicenter for advanced chipmaking in the U.S. that will bolster Intel's domestic lab-to-fab pipeline and strengthen Ohio's leadership in research and high tech."

Immense Impact
As the largest single private-sector investment in Ohio history, the initial phase of the project is expected to create 3,000 Intel jobs and 7,000 construction jobs over the course of the build, and to support tens of thousands of additional local long-term jobs across a broad ecosystem of suppliers and partners. Spanning nearly 1,000 acres in Licking County, just outside of Columbus, the "mega-site" can accommodate a total of eight chip factories - also known as "fabs" - as well as support operations and ecosystem partners. At full buildout, the total investment in the site could grow to as much as $100 billion over the next decade, making it one of the largest semiconductor manufacturing sites in the world.

Planning for the first two factories will start immediately, with construction expected to begin late in 2022. Production is expected to come online in 2025, when the fab will deliver chips using the industry's most advanced transistor technologies. Ohio will be home to Intel's first new manufacturing site location in 40 years.

In addition to Intel's presence in Ohio, the investment is expected to attract dozens of ecosystem partners and suppliers needed to provide local support for Intel's operations - from semiconductor equipment and materials suppliers to a range of service providers. Investments made by these suppliers will not only benefit Ohio but will have a significant economic impact on the broader U.S. semiconductor ecosystem. As part of today's announcement, Air Products, Applied Materials, LAM Research and Ultra Clean Technology have indicated plans to establish a physical presence in the region to support the buildout of the site, with more companies expected in the future.

"The impact of this mega-site investment will be profound," said Keyvan Esfarjani, Intel senior vice president of Manufacturing, Supply Chain and Operations. "A semiconductor factory is not like other factories. Building this semiconductor mega-site is akin to building a small city, which brings forth a vibrant community of supporting services and suppliers. Ohio is an ideal location for Intel's U.S. expansion because of its access to top talent, robust existing infrastructure, and long history as a manufacturing powerhouse. The scope and pace of Intel's expansion in Ohio, however, will depend heavily on funding from the CHIPS Act."

Community Commitment
To help develop and attract a pipeline of skilled talent from within the region, Intel plans to invest approximately $100 million over the next decade in partnership with Ohio universities, community colleges and the U.S. National Science Foundation. These partnerships will span a range of activities, from collaborative research projects to building semiconductor-specific curricula for associate and undergraduate degree programs.

"Semiconductors make almost every facet of modern life possible - from computers and smart phones to cars and appliances - and they played an integral role in the technologies that enabled us to stay connected throughout the pandemic," said Kristina M. Johnson, president of The Ohio State University. "They will also be integral to a wide range of applications in which Ohio State is actively involved from a research perspective, including artificial intelligence, quantum computing, vaccine development and more. So, it's a natural fit for Ohio State, along with our fellow institutions of higher education, to partner on this game-changing investment in semiconductor manufacturing. Today's announcement is significant for Ohio, for Intel and for the national interest, as we are still in the midst of a global chip shortage. But it also presents a remarkable opportunity for current and future students. It will cement Ohio as a top magnet for retaining and attracting a new generation of talent and build on numerous opportunities under development within our state's colleges and universities, including at Ohio's innovation districts, which are already taking shape in partnership with JobsOhio."

Intel has a long history of corporate responsibility at its current U.S. manufacturing sites and is committed to building strong relationships with the community in Licking County and beyond. Intel has a long-standing commitment to sustainability and continually strives to minimize its impact on the environment. The new site will be designed and constructed with green building principles, and the new factories have a goal to be powered by 100% renewable electricity and to achieve net positive water use and zero total waste to landfill in support of Intel's 2030 sustainability goals.

For more information on Intel's plans in Ohio and its commitment to the community, visit the Intel Ohio web page.

Intel Foundry Services Momentum
In addition to providing capacity for Intel's leading-edge products, these new factories will support growing demand for the company's new foundry business, Intel Foundry Services (IFS).

"With IFS, Intel is opening its factory doors wide to serve the needs of foundry customers around the globe - many of whom are looking for more geographical balance in the semiconductor supply chain," said Dr. Randhir Thakur, senior vice president and president of Intel Foundry Services. "The Ohio factories are designed for the 'Angstrom era,' with support for Intel's most advanced process technologies, including Intel 18A. These technologies are critical for enabling next-generation foundry customer products across a range of applications, from high-performance mobile to artificial intelligence."

The Ohio site will also provide leading-edge process technology to support the U.S. government's unique security and infrastructure needs.
Sources: TIME, Intel
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39 Comments on Intel Reveals Plans for US$20 Billion Chip Fab in Ohio

#1
Caring1
Not exactly Texas, wasn't that the last rumoured site?
Posted on Reply
#4
R-T-B
TiggerJesus does Intel print money
No, but they print semiconductors, which are worth megamoney.
Posted on Reply
#6
defaultluser
I'm sorry man, but Semiconductors in Ohio?

You're several hours away from anything remotely-tech-developed in PA being able to commute (Pittsburgh is the closest option).


Texas made sense to get invaded by Silicon Valley, because all those oil companies already needed high-tech to keep the crude flowing (Hence Texas Instruments in Dallas started things way before Motorola and AMD invaded Austin!) There is no such baseline tech need for anything in the state of Ohio (and thus, you have to import thousands of tech people who don't want to go there)

You know why they gave this story to Time? It's because they know this will be just as much of as failure as the 450mm fab down in Az (took them a decade to finish it, and they abandoned the large wafer)
Posted on Reply
#8
tygrus
Intel using Time magazine is really aimed at investors not customers.
Posted on Reply
#9
Adam Krazispeed
TiggerJesus does Intel print money
Might as well print money lol, an hell, ID OVE TO WORK IN A CHIP FAB ;) and id only be about 1hr 40 minutes away where i live in Nky/cincinnati :cool: FREE engineering sample's :) :peace::peace:
Posted on Reply
#10
Turmania
I'm not really expert on this but shouldn't these fabs be very close to a water source?
Posted on Reply
#11
Nordic
By the time this and all the other fabs being built, will supply meet demand or will demand further outpace supply?
Posted on Reply
#12
TheLostSwede
News Editor
NordicBy the time this and all the other fabs being built, will supply meet demand or will demand further outpace supply?
Define the demand. Not everyone's using Intel chips, so Intel will likely be able to fill their own demand for the bits they make by the time all their planned fabs are built, but the bigger question is, will everyone else keep up? At the moment, it's not looking great.
TurmaniaI'm not really expert on this but shouldn't these fabs be very close to a water source?
They use this. So "regular" water isn't good enough.
en.wikipedia.org/wiki/Ultrapure_water
tygrusIntel using Time magazine is really aimed at investors not customers.
What kind of investors though? Must be individuals, not investment companies and banks for sure.
Posted on Reply
#13
TheinsanegamerN
defaultluserI'm sorry man, but Semiconductors in Ohio?

You're several hours away from anything remotely-tech-developed in PA being able to commute (Pittsburgh is the closest option).


Texas made sense to get invaded by Silicon Valley, because all those oil companies already needed high-tech to keep the crude flowing (Hence Texas Instruments in Dallas started things way before Motorola and AMD invaded Austin!) There is no such baseline tech need for anything in the state of Ohio (and thus, you have to import thousands of tech people who don't want to go there)

You know why they gave this story to Time? It's because they know this will be just as much of as failure as the 450mm fab down in Az (took them a decade to finish it, and they abandoned the large wafer)
*intel announces development coming to state that has struggled to rebuild following 2008*

"MaN hOw StUpId WhY aRe ThEy InVeStInG hErE tHeY sHoUlD oNlY bUiLd WhErE eVeRyOnE eLsE iS aLrEaDy!!!11!!"

See, this mentality is why so many parts of America are horribly underdeveloped with 0 opportunity for advancement, and why housing in one of the few areas of the country with modern industry are utterly unaffordable; you complain silicon valley and big cities in texas are becoming unaffordable urban sprawl, then when a company goes literally anywhere else you complaint hey are not going to silicon valley. You know that all the tech people in places like texas and california didnt all COME from there, right? They went where the jobs were, and now they have an option that isnt overpriced to hell and back. Rather then importing workers, they could *gasp* TRAIN the people who already work there and are increasingly leaving for more tech heavy states. Crazy, right?
Posted on Reply
#14
R-T-B
TheinsanegamerN*intel announces development coming to state that has struggled to rebuild following 2008*

"MaN hOw StUpId WhY aRe ThEy InVeStInG hErE tHeY sHoUlD oNlY bUiLd WhErE eVeRyOnE eLsE iS aLrEaDy!!!11!!"

See, this mentality is why so many parts of America are horribly underdeveloped with 0 opportunity for advancement, and why housing in one of the few areas of the country with modern industry are utterly unaffordable; you complain silicon valley and big cities in texas are becoming unaffordable urban sprawl, then when a company goes literally anywhere else you complaint hey are not going to silicon valley. You know that all the tech people in places like texas and california didnt all COME from there, right? They went where the jobs were, and now they have an option that isnt overpriced to hell and back. Rather then importing workers, they could *gasp* TRAIN the people who already work there and are increasingly leaving for more tech heavy states. Crazy, right?
Hey man, I'll agree, I just hope Intel has training ready for those who need it.
Posted on Reply
#15
looniam
R-T-BHey man, I'll agree, I just hope Intel has training ready for those who need it.
though it pains my O-H to admit it, ann arbor is a 4 hour drive to start recruiting. btw, google, amazon and facebook already have centers in albany, oh. its not like ohio is nothing but corn fields. . .(with racist farmers)
Posted on Reply
#16
seth1911
Intel have good cpu for a good price like 10100F for 80€ or the 12100F for 100€ but the prices for the boards are shit, a H 410 63€ or even a H610 for 100€ :laugh:

My limit for a shit H Chipset is 50€ with 4 SATA or even 65€ for 6 SATA:)
But not 63€/100€ for garbage 4x Sata like H410 or H610.
Posted on Reply
#17
Tom Sunday
TiggerJesus does Intel print money
In 2020, Intel invested US$13.6 billion in research and development and US$14.3 billion in capital expenditures. I am embarrassed to even look what AMD and NVIDIA invested for the same period. It was the 2020 Intel period that actually graduated Alder Lake!
Posted on Reply
#18
Unregistered
Tom SundayIn 2020, Intel invested US$13.6 billion in research and development and US$14.3 billion in capital expenditures. I am embarrassed to even look what AMD and NVIDIA invested for the same period. It was the 2020 Intel period that actually graduated Alder Lake!
Exactly why it is stupid to write Intel off, as some fidiots do
Posted on Edit | Reply
#19
Tom Sunday
Amazing…expectation is that this becomes the largest silicon manufacturing location on the planet. At least it will not be located in Taiwan, South Korea or Mainland China. These countries unfortunately all maintaining themselves to be beleaguered and with highly questionable and uncertain production and political futures. Good to see that Intel is investing their CAPEX in so-called safe harbor locations.
Posted on Reply
#20
R-T-B
looniamthough it pains my O-H to admit it, ann arbor is a 4 hour drive to start recruiting. btw, google, amazon and facebook already have centers in albany, oh. its not like ohio is nothing but corn fields. . .(with racist farmers)
I know nothing about the area, comment was more general. But stereotypes do tend to be easily disproven, part of why they are discouraged.
Tom SundayIn 2020, Intel invested US$13.6 billion in research and development and US$14.3 billion in capital expenditures. I am embarrassed to even look what AMD and NVIDIA invested for the same period. It was the 2020 Intel period that actually graduated Alder Lake!
There competitors in chip fab aren't AMD/NVIDIA though. They are the likes of TSMC, Samsung, etc
Posted on Reply
#21
Fourstaff
I wish them all the best, because its exceedingly difficult to start a plant in a "greenfield" location. UMC tried in Tainan instead of the usual Hsinchu, they didn't manage to flesh it out well (only 1 fab in Tainan vs 7 in Hsinchu). In addition to the difficulty of building a new fab, a lot of auxiliary services are required: supply chain, logistics, good schools for the kids, good food and for the young people, vibrant social scene. Proximity to Columbus might help.
Posted on Reply
#22
looniam
R-T-BI know nothing about the area, comment was more general. But stereotypes do tend to be easily disproven, part of why they are discouraged.
i'm sure you wouldn't have made that comment if it was the west coast; so even generally, i am offended for all ohioans. you should know about ohio and the midwest, it has a rich history of cutting edge tech in the day; carnegie and rockefeller the bill gates and alton musk of their day, lived in cleveland, ohio. steel production and petroleum refinement (hello shell oil!) the industrial revolution. the whole rust belt has been left to fend for itself for the last 50 years and been the brunt of jokes.

people who don't know, don't have an opinion/comment to make since they get disproven and should be discouraged. it works like that too :)
Posted on Reply
#23
R-T-B
looniami'm sure you wouldn't have made that comment if it was the west coast
Depends what part... NorCal is mostly farmers. Hell, they literally have a mountain made of Cow Manure there.
And no, I literally hear "Ohio" and the only thing that pops into my head is "Drew Carry Show" so not exactly redneck, nor will I claim I have any idea what it's like there from a literal TV series.

I do know regardless all of America is suffering from a generational gap requiring retraining for new tech... so... I really can't say I wouldn't have said it about well... anywhere with boomer generation, frankly. Many of them (no, not all, some are already on top of it) could benefit.

I do apologize for offending you all the same. Not my intent, and am glad to learn some about your area!
Posted on Reply
#24
claes
looniami'm sure you wouldn't have made that comment if it was the west coast; so even generally, i am offended for all ohioans. you should know about ohio and the midwest, it has a rich history of cutting edge tech in the day; carnegie and rockefeller the bill gates and alton musk of their day, lived in cleveland, ohio. steel production and petroleum refinement (hello shell oil!) the industrial revolution. the whole rust belt has been left to fend for itself for the last 50 years and been the brunt of jokes.

people who don't know, don't have an opinion/comment to make since they get disproven and should be discouraged. it works like that too :)
I mean, sure, but you’re also the state that abused Lebron, let him go in a heretic fashion, let him come back and win your first championship in 40+ years, and then pouted and insulted him when he left the second time…

Having lived in the Midwest, I am comfortable saying it’s pretty trash, but I get the post-gaslighting empathy. Carnegie etc invested in many smaller states, but given how they pulled out, who cares? Ohioans deserve better than claiming fame to venture capitalists and generational athletic talent.
Posted on Reply
#25
looniam
R-T-B. so... I really can't say I wouldn't have said it about well... anywhere with boomer generation, frankly.
best thing about the cold winters in ohio, the old people move to florida
R-T-BI do apologize for offending you all the same. Not my intent, and am glad to learn some about your area!
no worries froggy. :)
claesI mean, sure, but you’re also the state that abused Lebron,
:roll:
yeah a whole state . . :kookoo:

reflects more about you.
Posted on Reply
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