Intel To Invest $28-B To Build Two Chip Factories In Ohio

Intel will invest more than $28 billion to construct two new chip factories in Ohio, the company announced.

Intel said the project’s initial phase is expected to create 3,000 Intel jobs. I Photo: Intel Corporation

This move is the latest in its efforts to expand its contract manufacturing business and better compete with Taiwan Semiconductor Manufacturing Co. (TSMC), Reuters reported.

Shares of the struggling chip firm rose nearly 2% in early trading, though the stock has declined more than 55% this year.

Intel's foundry business is central to CEO Pat Gelsinger's turnaround strategy, as the former chipmaking giant seeks to regain the technological advantage it lost to TSMC, the world's largest contract chipmaker.

The substantial investment comes over a month after Intel secured a multibillion-dollar deal with Amazon to develop custom AI chips for the e-commerce giant's cloud services unit, a deal seen as a significant endorsement of Intel's loss-making foundry business.

The Santa Clara, California-based company said the project’s initial phase is expected to create 3,000 Intel jobs.