Intel's Ohio Plant Could Be the World's Largest Chip Factory

Intel said Friday it will invest up to $100 billion to build potentially the world's largest chip manufacturing complex in Ohio to increase capacity to address the global semiconductor shortage. The move can be seen as part of CEO Pat Gelsinger's strategy to regain Intel's dominance in chipmaking and reduce America's reliance on Asian manufacturing hubs, which it has tight control of the market. As chipmakers strive to increase production, Intel's plans for new factories are not to alleviate the current supply shortage because such complexes take years to build. Gelsinger reiterated on Friday that he expects the chip shortage to continue into 2023. "China is doing everything it can to seize the global market, that's how they try to compete with us," said US President Joe Biden. US Secretary of Commerce Gina Raimondo said at the event that the current semiconductor supply chain is "too much dependent on conditions and countries halfway around the world". According to Gartner data, Intel handed over its #1 semiconductor vendor position to Samsung in 2021, falling to second place with a growth of only 0.5%. Intel laid the groundwork for two factories in Arizona in September as part of its turnaround plan to become a major chip maker for external customers. The investment made by Intel in the state of Ohio is expected to attract other names in the technology sector. Intel said that names such as Air Products (NYSE:APD), Applied Materials (NASDAQ:AMAT), LAM Research and Ultra Clean Technology are already showing interest. Gelsinger said he hopes to announce another large production facility in Europe in the coming months.