Tuesday, 24 May, 2022
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Biden hails Intel's $20 bn chip plant investment amid shortage

Biden hails Intel's $20 bn chip plant investment amid shortage

US President Joe Biden on Friday praised Intel's plans to spend $20 billion on a new US semiconductor facility, hailing the "historic" investment even as a global chip shortage fans the inflation wave weighing on his leadership.

Biden is urging manufacturers to bring production back to the United States, which was once a leader in making the chips key to everything from vacuums and televisions to cars which have become scarce during the pandemic.

Intel said it plans to begin construction at the end of the year on two plants in the Midwestern state of Ohio, and chip production could start as early as 2025.

Problems in global supply chains have highlighted the fundamental importance of semiconductors, as well as the risks of overreliance on imports.

 The closure of semiconductor plants, particularly in Asia, due to pandemic disruptions led to a global chip shortage that has affected a range of industries from automobiles to video games.

  That was coupled with surging demand creating bottlenecks, forcing companies to slow production, and sending prices soaring.

 "This will be our first new manufacturing site in 40 years, and spanning nearly 1,000 acres (400 hectares) will be a mega fab location," Intel's CEO Pat Gelsinger said at the White House.