Intel To Make World's Largest AI Chip Factory In The US

Intel has unveiled a massive $100 billion investment plan spanning four US states with the goal of building and growing its factories that produce silicon chips.

With the aim of obtaining an extra $25 billion in tax advantages, the action follows the acquisition of $19.5 billion in federal grants and loans. The construction of what CEO Pat Gelsinger called "the largest AI chip manufacturing site in the world" outside Columbus, Ohio, is the centerpiece of Intel's ambitious five-year spending plan. Operations are expected to start as early as 2027.

US Government Funds Intel in Semiconductor Push:

The US government's commitment to enhancing domestic semiconductor manufacturing capabilities is demonstrated by the federal subsidies it provided to Intel under the CHIPS Act.

Along with expanding operations in Arizona, where competitor Taiwan Semiconductor Manufacturing Co (TSMC) is also growing its footprint with assistance from President Joe Biden's semiconductor manufacturing initiative, Intel's investment strategy also entails modernizing facilities in New Mexico and Oregon.

Biden's Chip Initiative to Boost Intel's Competitiveness:

It is anticipated that the funding influx from the Biden administration's larger attempt to revitalize chip production will greatly increase Intel's competitiveness. Intel has long been a pioneer in the production of semiconductors, putting its earnings back into R&D to preserve its position as the industry leader in technology.

But the business has had difficulties recently, losing territory to rivals like TSMC and seeing a decline in profit margins.