Intel is planning a $100 billion investment in four US states to build and expand factories, with $19.5 billion in federal grants and loans secured and seeking an additional $25 billion in tax breaks, according to Reuters on Wednesday.
The main focus is on creating the largest AI chip manufacturing site in the world near Columbus, Ohio, starting in 2027. The federal funds were provided under the CHIPS Act.
Intel will also upgrade facilities in New Mexico and Oregon and expand operations in Arizona, where Taiwan Semiconductor Manufacturing Company (TSMC) is also building a large factory.
The federal funds will help Intel improve its business model and regain its manufacturing edge.
Intel aims to allocate 30 per cent of the investment to construction costs and 70 per cent to chipmaking tools from various suppliers. The Ohio site is expected to be operational by 2027 or 2028. Intel plans to fund most of the purchases from its existing cash flows.
