A rendering shows early plans for two new leading-edge Intel processor factories in Licking County, Ohio. Announced on Jan. 21, 2022, the $20 billion project spans nearly 1,000 acres and is the largesRendering of Intel's upcoming processor factories in New Albany, Ohio.Source: Intel Corporation

What you need to know

  • Intel announced plans for two chip factories in New Albany, Ohio, which is near Columbus.
  • Up to $100 billion could be invested in the site over the next ten years, including an initial investment of $20 billion by Intel.
  • The 1,000-acre site is large enough to hold eight chip factories and is expected to start production in 2025.

On January 21, 2022, Intel announced plans for a mega-site chip factor in New Albany, Ohio, which is just outside of Columbus, Ohio. The site will initially include two chip factories but is large enough to hold up to eight chip factories on its 1,000-acre lot. Intel will invest up to $100 billion for the site over the next ten years, including a $20 billion initial investment.

"Our expectation is that this becomes the largest silicon manufacturing location on the planet," said Intel CEO Pat Gelsinger to TIME.

The site is part of Intel's IDM 2.0 strategy, which includes making chips for other companies. Construction on the site is expected to start in late 2022. Intel plans to start production at the fab (fabrication plant) in 2025. The new mega-site should also help alleviate the ongoing global chip shortage.

In addition to producing chips, Intel highlights that the site will create thousands of jobs. Intel states that the project will create 3,000 Intel jobs and 7,000 construction jobs during the building of the site. Tens of thousands of long-term jobs are expected by the project as well, including employees of Intel's partners and suppliers.

"Intel's actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come, said Gilsinger. "Intel is bringing leading capability and capacity back to the United States to strengthen the global semiconductor industry. These factories will create a new epicenter for advanced chipmaking in the U.S. that will bolster Intel's domestic lab-to-fab pipeline and strengthen Ohio's leadership in research and high tech."

Intel also announced plans to invest around $100 million over the next decade in partnerships with universities and community colleges in Ohio and the U.S. National Science Foundation.

Intel's confirmation of the new site came just a week after rumors emerged regarding a new Intel plant in Ohio.

The site in Ohio is only part of Intel's expansion of its chip production. Last year, the company began construction of a new plant in Arizona as part of a separate $20 billion investment.