Intel's Investment in Ohio
(Reuters) – Intel will invest more than $28 billion to construct two new chip factories in Ohio, the company announced on Friday. This investment is part of Intel's strategy to expand its contract manufacturing business and compete more effectively with Taiwan Semiconductor Manufacturing Co.
Shares of Intel experienced a nearly 2% increase in early trading, though the stock has declined over 55% this year.
The foundry business is central to CEO Pat Gelsinger's turnaround strategy as Intel attempts to regain the technological edge it lost to TSMC, the world's leading contract chipmaker.
This significant investment follows Intel's multibillion-dollar agreement with Amazon (NASDAQ:AMZN) to develop custom AI chips for the e-commerce company's cloud services unit. This deal is viewed as a critical endorsement of Intel's struggling foundry business.
The initial phase of the Ohio project is projected to create 3,000 jobs at Intel.
Intel has faced a challenging year, including a suspended dividend, workforce reductions, and the unexpected resignation of a prominent board member, all amid a declining stock price that jeopardizes its inclusion in the Dow Jones index.
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