👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Intel Gains as It Commits $20 Billion More for Chip Factories

Published 01/21/2022, 08:56 PM
© Reuters.

© Reuters.

INTC
-0.68%
AMAT
-0.43%
APD
-0.77%

By Dhirendra Tripathi

Investing.com – Intel stock (NASDAQ:INTC) traded 0.6% higher in Friday’s premarket as it said it will invest more than $20 billion in two new leading-edge chip factories in Ohio, a site that could ultimately host eight such units.

At full buildout, total investment in the 1,000-acre site could be as much as $100 billion over 10 years, making it one of the largest semiconductor manufacturing sites in the world, Intel said.

This follows the company’s September announcement of committing a similar investment in setting up two units in Arizona. The new project is CEO Pat Gelsinger’s attempt to return the company to its days of glory. Over the years, it either ceded markets or saw new opportunities be grabbed by nimbler rivals.

The investments are also in line with Gelsinger’s ambitious plan to make more semiconductors in U.S., an exercise meant to de-risk economies from excessive reliance on China for critical components.

Intel said Air Products (NYSE:APD), Applied Materials (NASDAQ:AMAT), LAM Research and Ultra Clean Technology have indicated plans to establish a physical presence in the region.

The commitments come at a time when every manufacturer is pouring in billions of dollars to meet record demand for chips as companies and people turn more to a digital world. While supply chains remain clogged, creating a short-term crunch, manufacturers expect long-term demand to remain firm.

 

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Should you invest $2,000 in INTC right now?

ProPicks AI are 6 model portfolios created by Investing.com which identify the best stocks for investors to buy now. The stocks that made the cut could produce monster returns in the coming years. Is INTC one of them?

Unlock ProPicks AI to find out

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.