Intel plans to spend $100 billion to expand in U.S.

March 25, 2024 /SemiMedia/ -- Intel announced a $100 billion investment to build and expand factories in four U.S. states and hopes to secure an additional $25 billion in tax credits, after the U.S. government announced $19.5 billion in direct funding and loans.

Chief Executive Pat Gelsinger said on March 19 that the core of Intel's five-year spending plan is to transform vacant land near Columbus, Ohio, into the world's largest artificial intelligence (AI) chip production base, which could begin as soon as 2027.

Gelsinger said about 30% of the $100 billion plan would be spent on construction costs such as labor, pipes and concrete. The remaining funds will be used to purchase chip equipment from companies such as ASML, Tokyo Electron Ltd., Applied Materials and KLA.

These will help bring Intel's Ohio factory online in 2027 or 2028. However, Gelsinger said that if the chip market slows down significantly, the schedule may be delayed. In addition to grants and loans, Intel plans to use existing cash flow for most purchases.