Intel Commits $28 Billion for Chip Facilities in Ohio

Intel (NASDAQ: INTC) Corp has announced plans to invest over $28 billion in the construction of two new chip factories in Ohio, aimed at expanding its contract manufacturing and competing more effectively with Taiwan Semiconductor Manufacturing Co (TSMC). Today's announcement represents a significant investment in the company's foundry business, a key component of CEO Pat Gelsinger's strategy to regain technological leadership in chip production.

Following the announcement, the company's stock saw an early increase of approximately 2%. This marks a positive shift for the stock, which has experienced a significant decline of over 55% this year.

The investment decision follows a deal made over a month ago with Amazon, in which Intel agreed to produce custom artificial intelligence chips for Amazon's cloud services division. This partnership has been viewed as a significant endorsement for Intel's foundry business, which has yet to become profitable.

Headquartered in Santa Clara, California, Intel anticipates that the first phase of the Ohio project will create 3,000 job opportunities within the company. This development comes at a critical time for Intel, which has faced various challenges throughout the year, including suspending dividend payments, reducing its workforce, and managing the sudden departure of a leading board member. These challenges have also put the company's position on the Dow Jones index at risk.