Intel is reportedly preparing for a $100 billion spending spree that would help build and expand factories across four states in the U.S.
The decision came after the company secured $19.5 billion in federal grants and loans while it seeks to get another $25 billion in tax breaks.
Intel to Expand Factories Across U.S.
Intel's spending spree would cover its five-year plan to establish factories on empty fields near Columbus, Ohio. CEO Pat Gelsinger said that it would be "the largest AI chip manufacturing site in the world," and would start as soon as 2027.
The company is also planning to revamp some of its sites including those in New Mexico and Oregon. Meanwhile, an expansion is on its way to Arizona, rivaling the massive factory that Taiwan Semiconductor Manufacturing Co. is building.
Gelsinger detailed that 30% of the $100 billion plan will be used on construction costs from labor to materials. The remaining percentage will cover the production cost of chipmaking and acquiring tools from ASML, Tokyo Electron, Applied Materials, and KLA, among others.
Intel Aims to Bring Back Glory
In 2021, Gelsinger claimed that the company had a plan to bring Intel back to the top position. However, he explicitly stated that government support is vital to make it profitable.
Despite the plans, the CEO acknowledged that the timeline could change if the chip market declines. Currently, Intel is trying to purchase using its existing cash flows.
"It took us three-plus decades to lose this industry. It's not going to come back in three to five years of CHIPS Act" funding," said Gelsinger.
The CEO previously explained that a second round of U.S. funding for chip factories is vital to re-establish the country's position as the leader in semiconductor manufacturing.
