Jan 21, 2022 (Baystreet.ca via COMTEX) -- Intel /zigman2/quotes/203649727/composite INTC -0.80% said on Friday it would invest more than $20 billion in two new chip-making plants in Ohio, as it looks to boost its production capacity amid a global shortage of semiconductors that are used in everything from smartphones to cars.
The move is part of Chief Executive Officer Pat Gelsinger's strategy to restore Intel's dominance in chip making and reduce America's reliance on Asian manufacturing hubs, which have a vice-like grip on the market.
While chipmakers are scrambling to boost output, Intel's plans for new factories will not alleviate the current supply crunch, because such complexes take years to build. Gelsinger previously said he expected the chip shortages to last into 2023.
Intel, known colloquially as "Mr. Chips," lost out to Samsung Electronics /zigman2/quotes/202367843/delayed SSNLF +30.66% as a top semiconductor vendor in 2021 and it dropped to the second spot with 0.5% growth last year, delivering the lowest growth rate among the top 25 vendors, data from Gartner showed.
As part of its turnaround plan to become a major manufacturer of chips for outside customers, Intel broke ground on two factories in Arizona in September. The $20 billion plants will bring the total number of Intel factories at its campus in the Phoenix suburb of Chandler to six.
The planned investment in Ohio in what could be an eight-factory complex will cost tens of billions of dollars and create 3,000 permanent jobs and 7,000 construction jobs on the 1,000-acre site in Licking County, just outside of Columbus.
INTC shares grabbed 26 cents to $52.30
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