Silicon onshoring is the process of moving silicon chip production to a new location. This can be done for a variety of reasons, including to take advantage of new tax incentives and to be closer to customers. In recent years, there has been a lot of onshoring activity in the United States, as companies have moved their operations from overseas to take advantage of the country’s favorable business environment.
The move to Phoenix by Taiwan Semiconductor Manufacturing Company (TSMC) is a prime example of this trend. TSMC–one of the largest semiconductor manufacturers in the world–announced plans to invest $12 billion in a new chip manufacturing plant in Phoenix, Arizona. This new plant will help the company to increase their production capacity by 50%.
Samsung is also planning to invest in chip manufacturing, with a $17 billion investment of its own for a new plant in Austin, Texas. This new plant will be the company’s most advanced yet, and will allow Samsung to keep up with the rapidly growing demand for semiconductors.
Intel Moves Chip Manufacturing to Columbus, Ohio
Intel recently announced plans to build a $20 billion factory just outside Ohio’s capital, which will create thousands of jobs and strengthen Columbus’s position as a leading tech hub in the United States. This is great news for the city’s economy and for the thousands of people who are now employed in the silicon industry.
Silicon Valley has long been known as the center of the tech world, but Columbus, Ohio is quickly becoming a contender for the title. Silicon is a key component of semiconductors, which are used in a wide range of electronic devices. Columbus’ silicon manufacturers supply semiconductors to companies all over the world, establishing themselves as a vital part of the global tech supply chain. Thanks to its emerging silicon manufacturing sector, well-educated workforce, and strong cluster of related industries, Columbus is quickly becoming known as “the Silicon Heartland.”
The local business community has been a big help in making the city a leading center for silicon production. The Columbus Chamber of Commerce, for example, has worked to create a strong business environment in Columbus and has provided the silicon companies with the resources they need to grow and succeed.
There are a number of factors that have made Columbus an ideal place for silicon manufacturers, including:
- A well-educated workforce. Ohio has a highly educated workforce, with more than 400,000 college graduates. The state’s universities and colleges offer degrees in engineering and other technical fields, providing graduates who are skilled in chip manufacturing.
- A robust infrastructure. Ohio has a strong infrastructure, with an extensive highway system and rail network. This infrastructure is important for transporting the heavy equipment and materials used in chip manufacturing.
- Tax incentives. Ohio offers tax incentives to businesses that invest in the state, including tax credits and exemptions from property taxes. These incentives make it more affordable for businesses to invest in chip manufacturing in Ohio.
- A stable economy. The Ohio economy is stable, with a low unemployment rate and strong business environment. This stability ensures that businesses can count on a steady supply of workers and customers in Ohio.
- Proximity to markets. Ohio is located close to key markets for chip manufacturers, like the Northeast and Midwest United States. This proximity allows manufacturers to easily sell their products to these markets.
- Strong cluster of related industries. The city has a thriving tech sector, with companies like Amazon, Facebook, and Google all having a presence. This means that there is a lot of synergy between the silicon industry and other tech industries, which helps to spur innovation.
The Economic Impact of Silicon Manufacturing
Silicon manufacturers are creating jobs in the city that provide quality employment opportunities for Columbus residents, in turn, supporting the local economy. In fact, Intel announced a $135,000 average annual salary for employees on the new campus, which well exceeds Columbus’s $57,118 median annual income.
Also, by making Columbus a leader for silicon production, manufacturers are attracting other businesses to the city, creating a strong cluster of related industries. These manufacturers are spending money on equipment and materials and hiring local workers, spurring economic growth. And with big players like Drive Capital investing in Midwest companies, Columbus is becoming an even more attractive place to do business.
The Future of Silicon Manufacturing in Columbus
One factor that will play a role in the future of silicon manufacturing is the continued development of new and innovative electronic devices. As new products are created, there will be a corresponding demand for more silicon.
Another important factor is the cost of manufacturing silicon. Silicon manufacturers in Columbus must be able to compete with manufacturers in other parts of the world, which means keeping costs low. This will require continued innovation and efficiency in the manufacturing process.
Finally, workforce development is critical. The region must have a pipeline of talented workers who are trained in the latest technologies and processes to ensure that Columbus remains at the forefront of the industry. Intel has been spearheading this initiative by pledging $100 million toward partnerships with educational institutions. They also awarded $2.8 million to develop two-year pathways to semiconductor technician work in partnership with Ohio community colleges, since about 70 percent of Intel jobs in Ohio will be technician roles.
Intel’s investment is sure to have a positive impact on Columbus and its residents for many years to come. To learn more about Columbus and other emerging tech hubs, visit our website and connect with us on social media.