SANTA CLARA, California: Chip maker Intel has announced that it will invest more than $20 billion in two new chip factories in Ohio, making the state the company's first new manufacturing location in 40 years.
The announcement came amidst the global chip shortage exacerbated by the COVID-19 pandemic.
Intel's investment will significantly expand U.S. semiconductor manufacturing capabilities. Much of the international tech industry currently relies on chip manufacturing in Asia.
Semiconductor chips are needed in the manufacturing of computers, smartphones, automobiles, home appliances and other common products.
In a statement, Intel CEO Pat Gelsinger said, "Today's investment marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership."
The California-based company said the project is the largest single private-sector investment in Ohio history, creating 3,000 Intel jobs and 7,000 construction jobs. Construction is expected to begin in late 2022 and chip production in 2025.
"Intel's actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come," Gelsinger added.
In a statement, Ohio Gov. Mike DeWine said the announcement is "monumental news for the state of Ohio."
"Intel's new facilities will be transformative for our state, creating thousands of good-paying jobs in Ohio manufacturing's 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," he added.
Intel also said it pledged an additional $100 million to help "build a pipeline of talent and bolster research programs in the region."
The news of Intel's investment in U.S. semiconductor manufacturing follows Samsung's announcement last year of it plan to build a $17 billion semiconductor factory in Austin, Texas.