Computer chip production coming to Ohio

Intel, the second-largest global manufacturer of semiconductors, announced Friday it will invest $20 billion to build two facilities near Columbus, Ohio. The factories produce computer chips and a “foundry” business. Intel plans to start construction this year and be fully operational by 2025. The California-based company is also investing $100 million for education to train applicants for an expected 3,000 new jobs. The move could bring 7,000 construction jobs to the region and support tens of thousands more for suppliers and partners, Intel said.

How does this help the economy? Manufacturers have long complained that the United States is overly reliant on Asian companies for essential computer chips used to power vehicles and technology. American manufacturing only accounts for 12 percent of worldwide chip production, down from 37 percent in 1990. Intel’s move is expected to boost production and relieve supply chain pressures that have created manufacturing bottlenecks. Lawmakers say in-country production is also a boost for national security. President Joe Biden praised the investment on Friday and pushed the U.S. House of Representatives to pass a $52 billion bill to support more stateside factories.

Dig deeper: Listen to Josh Schumacher’s report on The World and Everything in It podcast about how semiconductor chip shortages have stalled the auto industry.