Intel Chip Plants 3-14-24

Intel is building Chip Plants in Arizona. Source: Fortune Feb-Mar 2024 

In September 2021, Intel broke ground on building 2 new chip plants in Chandler Arizona near Phoenix. This is a $20 billion investment for Intel. 

In January 2022, Intel selected New Albany Ohio, near Dayton to build another 2 chip plants. Production is expected to start in 2026. This is another $20 billion investment for Intel.

https://www.daytondailynews.com/local/intel-announces-delay-in-completion-of-20-billion-ohio-chip-plant/UJE3GXPUNBEFBGEDC3UA3OUWAY/#:~:text=Intel%20told%20this%20news%20outlet,the%20end%20of%20the%20year.

It takes 3 to 5 years to complete construction of these plants.

On February 9, 2024, Intel announced that it would delay the start of the New Albany Ohio plant due to expected lower demand. Also being delayed is the $39 billion in US government subsidies promised by Biden.

In July, another chipmaker delayed a U.S. plant based on concerns over market demand. Taiwan’s TSMC announced that it would push back the estimated kickoff of its $12 billion plant in Arizona until 2025. It was also noted at the time that they faced practical challenges in construction: not enough skilled workers to build the plant.

https://finance.yahoo.com/news/intel-delay-20-billion-ohio-155359096.html

TSMC — which makes roughly 90 percent of the world's advanced chips, powering everything including iPhones, artificial intelligence, electric vehicles and fighter jets — is the centerpiece of Taiwan's economy.Oct 9, 2023

Taiwan Semiconductor Manufacturing Company TSMC operates 4 plants in Taiwan

https://www.google.com/search?q=how+many+chip+plants+are+in+taiwan+2023&oq=how+many+chip+plants+are+in+taiwan&gs_lcrp=EgZjaHJvbWUqBwgBECEYoAEyBggAEEUYOTIHCAEQIRigATIHCAIQIRigATIHCAMQIRigATIHCAQQIRifBTIHCAUQIRifBdIBCTIwMjkxajFqN6gCALACAA&sourceid=chrome&ie=UTF-8

Intel has job openings in Taiwan, India and multiple locations.

https://jobs.intel.com/en/location/taiwan-jobs/599/1668284-7280291/3

Comments

China’s threat to invade Taiwan is being addressed by Intel’s expansion. It looked like the US could recover some of its losses of electronics manufacturing jobs.  I suspect the “weaker market demand” is due to the predictable failure of Biden’s EV push. It appears that China’s EV push is working and they may need more chips than they already get from the Netherlands and Taiwan.

But chip manufacturing is complicated and difficult and it takes a while to develop and increase yields of chips that can pass inspection. China’s success in the EV market could prompt them to delay it’s takeover of Taiwan. Their Hong Kong takeover experience was not good. The citizens of Taiwan would also object to Chinese governance and would leave Taiwan and take their expertise with them.

Norb Leahy, Dunwoody GA Tea Party Leader