Intel To Invest $100 Billion In Factories Across Four U.S. States

Intel plans to embark on a $100 billion spending spree across four US states to construct and expand factories after securing $19.5 billion in federal grants and loans - with hopes to secure an additional $25 billion in tax breaks, according to Stephen Nellis' report for Reuters.

The centerpiece of Intel's five-year spending plan is the transformation of empty fields near Columbus, Ohio. I Photo: Intel Corporation

The centerpiece of Intel's five-year spending plan is the transformation of empty fields near Columbus, Ohio, into what CEO Pat Gelsinger described to reporters as "the largest AI chip manufacturing site in the world," expected to commence as soon as 2027.

The US government's announcement of federal funds to Intel under the CHIPS Act this week propelled its shares up 4% in premarket trading.

Intel's strategy also entails revitalizing sites in New Mexico and Oregon, as well as expanding operations in Arizona, where long-time rival Taiwan Semiconductor Manufacturing Co. (TSMC) is also constructing a massive factory, which it hopes will receive funding from President Joe Biden's initiative to revive advanced semiconductor manufacturing in the US.

The funds provided by Biden's plan for a broader chip-making renaissance will significantly aid Intel in revitalizing its business model.

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