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.