Intel will announce plans to build a U.S. factory on Friday, local time, and CEO Pat Gelsinger hopes to regain its lead in chip manufacturing.
Intel declined to comment on the location of the new factory. The company will hold a briefing on Friday to "share the latest plan details on Intel Capital's chip manufacturing leadership." Ohio Governor Mike DeWine was also holding an event for "the state's historic economic development announcement," a statement from the Ohio governor's office said . Local media reported that Intel plans to spend $20 billion to build a new chip manufacturing plant in the Columbus District.
"Intel is committed to investing in manufacturing capabilities to meet growing demand for advanced semiconductors and to build a more resilient, globally balanced supply chain," Intel said in a statement about the event.
Gelsinger has been emphasizing the need to build more chip factories in the U.S. and Europe, where production capacity for key electronic components has fallen sharply.
Intel currently has factories in Oregon, Arizona and New Mexico . Putting some of Intel's capital expenditures into building new factories could help support Gelsinger's bid for government investment, which could help to cushion some of the earnings from Gelsinger's efforts to revive Intel's manufacturing capabilities and move into chip outsourcing Decrease in ability. The chip outsourcing market is currently dominated by TSMC and Samsung Electronics.
Ohio has traditionally not had much ties to the tech industry. Building a new plant locally is also a reflection of Gelsinger's advocacy to increase the geographic diversity of the business. According to reports, Intel is also planning to build new manufacturing plants, test assembly plants and R&D centers in Germany, Italy and France.
Samsung and TSMC are considering building new factories in the United States . Gelsinger has already said he will build two new factories in the Phoenix, Calif., area that will specialize in chip outsourcing. Intel's factories currently only produce its own chips.
A year ago, Gelsinger rejoined Intel and announced that he would spend heavily to revive the company's manufacturing capabilities. Intel's leadership in chip manufacturing not only determines the performance of electronic components, but is also the cornerstone of Intel's decades-long dominance in the $400 billion chip industry. But Intel's lead in chip manufacturing has slipped in recent years.
This year, Gelsinger has reached a record level in budgets related to new plants and equipment. But TSMC and Samsung are planning to invest further, a status quo that underscores the huge and rising cost of high-end chip manufacturing.
TSMC has arranged more than $40 billion in capital expenditures this year. By comparison, Intel plans to invest $28 billion. South Korea's Samsung is likely to announce investment plans when it releases its latest quarterly earnings on Jan. 27. Analysts on average expect Samsung's investment budget to be about $36 billion.
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