WASHINGTON: Intel Corp announced on Friday (Jan 21) that it will invest up to US$100 billion (about RM418.65 billion) in Ohio to develop the world’s largest chip-making complex, aiming to improve capacity as a worldwide semiconductor shortage impacts everything from smartphones to autos.

The move is part of Intel CEO Pat Gelsinger’s plan to reclaim the company’s chip-making prowess and diminish America’s reliance on Asian manufacturing centres that have a stranglehold on the market.

According to Gelsinger, a US$20 billion investment on a 1,000-acre (approximately 404.69 hectares) property in New Albany, the largest in Ohio’s history, will produce 3,000 employment. With eight total fabrication factories, that could climb to US$100 billion, making it the greatest investment in Ohio history, he says.

He predicted that the silicon heartland will become “the world’s largest semiconductor manufacturing site.”

While chipmakers scramble to increase production, Intel’s plans for additional plants will not solve the present supply shortage since such complexes take years to construct.

On Friday, Gelsinger maintained that he expected chip shortages to last until 2023.

The Biden administration hopes to persuade Congress to grant US$52 billion in subsidy financing to greatly enhance chip manufacture in the US.

On Friday, US House Speaker Nancy Pelosi announced that a measure on competitiveness will be introduced shortly in the House of Representatives to assist boost semiconductor investment and supply chains. This includes the $52 billion in financing.

At a White House event with Gelsinger on Friday, US President Joe Biden praised Intel’s initiative and urged Congress to act.

“China is doing all it can to seize control of the global market in order to compete with the rest of us,” Biden added.

The present semiconductor supply chain, according to US Commerce Secretary Gina Raimondo, is “far too dependent on circumstances and nations halfway around the world.”

According to Gelsinger, without government assistance, “The Ohio site will still be launched. It just won’t happen as rapidly, and it won’t become as large as soon “..

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