Intel to invest $100 billion in four U.S. states for expansion after receiving government subsidies
After receiving $19.5 billion in federal grants and loans, Intel plans to invest a massive $100 billion in four U.S. states to build new and expanded factories, and hopes to receive another $25 billion in tax breaks.
CEO Pat Kissinger (Pat Gelsinger) said Tuesday that the centerpiece of Intel's five-year spending plan is to turn vacant land near Columbus, Ohio, into "the world's largest artificial intelligence chip manufacturing site," starting as soon as 2027.
The U.S. government announced federal funding for Intel under the Chip Act on Wednesday.
Intel's plans will also include revamping plants in New Mexico and Oregon and expanding operations in Arizona. Intel's longtime rival TSMC (TSM.US), which is also building a large plant in Arizona, is hoping to get money from President Joe Biden's push to bring advanced semiconductor manufacturing back to the United States.
For decades, the company was a world leader in making the fastest, smallest semiconductors, selling them at high prices and then investing the profits in more research and development to stay ahead.
But Intel lost that manufacturing edge to TSMC in the 2010s, and its profit margins plummeted as it cut prices to allow its products to maintain market share.
Kissinger announced a plan in 2021 to return Intel to the No. 1 spot, but he said he would need government support to make the program profitable. $Intel(INTC.US$
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CJWP : Soon will duopoly for wafer fabrication. this is great news... mobile phone, computer and etc all heavily depends chips. With this, cost will be competitive and we can enjoy much cheaper product.