In a recent move to expand its contract manufacturing business and more effectively compete with Taiwan Semiconductor Manufacturing Co., Intel announced on Friday that it will invest over $28 billion to develop two new chip plants in Ohio.
Early trading saw a nearly 2% increase in the struggling semiconductor company’s shares.
This year, the stock has fallen more than 55%.
A key component of CEO Pat Gelsinger’s turnaround plan is Intel’s foundry division, as the former chipmaking titan tries to regain the technological advantage it lost to TSMC, the biggest contract chipmaker in the world.
Laptops 1000The significant investment follows Intel’s multibillion-dollar agreement with Amazon more than a month ago, and to develop specialized AI processors for the cloud services division of the e-commerce behemoth.
The agreement was interpreted as a significant endorsement of Intel’s struggling foundry unit.
The Santa Clara, California-based business stated on Friday that 3,000 Intel positions are anticipated to be created during the project’s first phase.
The chipmaker has had a turbulent year, suspending its dividend, laying off employees, and witnessing the abrupt retirement of a prominent board member.
Additionally, the decline in its share price has put its position in the Dow Jones index in jeopardy.
