The Wall Street Journal Google Your News Update

The Wall Street Journal Google Your News Update

The Wall Street Journal short form story units for Google Your News Update

FRIDAY, JANUARY 21, 2022

1/21/2022 10:45:00 AM

Intel Pours Billions Into U.S. Chip Production

Intel plans to invest $20 billion to build a new chip-production facility in Ohio amid continuing global shortages. Wall Street Journal editor Alex Frangos tells WSJ What’s News host Luke Vargas this comes on top of more than $100 billion in chip-making investments which Intel has already announced in the past year.

Full Transcript

This transcript was prepared by a transcription service. This version may not be in its final form and may be updated.

Luke Vargas: Intel is planning to invest at least $20 billion in a new chip making facility in Ohio. That's on top of the more than $100 billion in chip making investments it's already announced in the last year. And it comes amid a global chip shortage, which has amplified the need for more or manufacturing. I'm Luke Vargas with The Wall Street Journal. And for more, we're joined by Markets Editor, Alex Frangos. Hi, Alex.

Alex Frangos: Hey, good morning.

Luke Vargas: First off, what do we know about these plans in Ohio?

Alex Frangos: Well, they're big. It's up to $20 billion in Columbus, Ohio. 3,000 jobs. And it's part of a much bigger investment plan by Intel and by basically chip makers around the world to boost the supply of these chips that are in just about everything and for which there is a huge shortage right now, so it's a pretty big deal.

Luke Vargas: On that global chip shortage, how significant are investments like these for the industry and for Intel's supply chain right now?

Alex Frangos: Well, it's important, but honestly, $20 billion is not that much. There's over a couple hundred billion dollars worth of investment going on around the world from big chip makers, like Samsung and TSMC and NVIDIA and Intel and others to address this problem, which is the pandemic hit and there was a huge amount of demand for goods and there weren't enough chips. And it turns out that they weren't investing enough even before the pandemic, and so now they're making up for lost time.

Luke Vargas: Alex, you mentioned how Intel has made several larger chip making announcements over the last year. Could you tell me a little bit more about that?

Alex Frangos: Sure. I mean, well, they've announced a couple of different big chip plants, including in Arizona and other places. And part of this is Intel has fallen behind. I mean, we used to think of Intel as synonymous with chips. It was the market leader. It's since been eclipsed in terms of market cap, really kind of cornered the market in high end fast chips that are used for video games and other things. And Samsung in Korea generates more revenue than Intel now from its chips business. So this is really a big investment by Intel to try to catch up and retake the lead.

Luke Vargas: And bigger picture. Are there any signs the global chip crunch could finally be letting up a little bit?

Alex Frangos: It's not as bad now as it was last year, but these things go into everything, cars especially, those are basically computers on wheels, your refrigerator, your smartphone,. And there's been huge demand for those things coming out of the pandemic, so industry people think that there will continue to be a shortage this year and even into next.

Luke Vargas: That was Markets Editor, Alex Frangos. Alex, thanks for being with us.

Alex Frangos: Great to be here.

Luke Vargas: To hear more stories about business and politics from The Wall Street Journal, ask your Google assistant to play WSJ What's News podcast.

SHARE THIS PODCAST

What’s News

What's News brings you the headlines and business news that move markets and the world—twice every weekday. In 10-12 minutes, get caught up on the best Wall Street Journal scoops and exclusives, with insight and analysis from the award-winning reporters that broke the stories. Hosted by Annmarie Fertoli and Luke Vargas.

Opinion: Free Expression

Based on his Wall Street Journal Opinion column "Free Expression," Editor-at-Large Gerry Baker speaks every week with some of the world's leading writers, influencers and thinkers about a variety of subjects. Baker will welcome his guests from the worlds of politics, philosophy, and culture for wide-ranging dialogues that will enlighten and fascinate listeners. Episodes will be released each week.

Minute Briefing

The top business headlines from The Wall Street Journal, three times daily. Whether it’s the latest on overseas markets, economic news out of Washington or closing numbers from Wall Street, you'll be in the know in a flash.

WSJ's Take On the Week

WSJ’s Take On the Week brings you the insights and analysis you need to get a leg up on the business and financial week to come. In less than 20 minutes, we cut through the noise to explain the major business and financial news that may move markets, all so you can make smarter investing decisions and take on the week with confidence. Episodes drop Sundays. Hosted by Dion Rabouin.

The Journal.

The most important stories, explained through the lens of business. A podcast about money, business and power. Hosted by Kate Linebaugh and Ryan Knutson, with Jessica Mendoza. The Journal is a co-production from Spotify and The Wall Street Journal.

Tech News Briefing

Tech News Briefing is your guide to what people in tech are talking about. Every weekday, we’ll bring you breaking tech news and scoops from the pros at the Wall Street Journal, insight into new innovations and policy debates, tips from our personal tech team, and exclusive interviews with movers and shakers in the industry. Hosted by Zoe Thomas

Your Money Briefing

Your Money Briefing is your personal-finance and career checklist, with the news that affects your money and what you do with it. From spending and saving to investing and taxes, the Wall Street Journal’s finance reporters and experts break down complicated money questions every weekday to help you make better decisions about managing your money. Hosted by J.R. Whalen.

WSJ’s The Future of Everything

What will the future look like? The Future of Everything offers a kaleidoscope view of the nascent trends that will shape our world. In every episode, join our award-winning team on a new journey of discovery. We’ll take you beyond what’s already out there, and make you smarter about the scientific and technological breakthroughs on the horizon that could transform our lives for the better.

Opinion: Potomac Watch

From the award-winning opinion pages of The Wall Street Journal, Paul Gigot, Kim Strassel, Bill McGurn and Kyle Peterson discuss the latest from Washington. Get critical perspective and the analysis you need on developments from the nation’s capital. Join them every weekday. Send your feedback to pwpodcast@wsj.com

As We Work

Work smarter and advance in your career with the As We Work podcast. With actionable steps grounded in WSJ reporting, As We Work gives practical advice to help you improve your work life. Hear compelling conversations with everyday people, experts and WSJ reporters as we focus on the workplace topics that are top of mind and offer tips and tricks for handling the thorniest of situations.

PAID PROGRAM

The Future Is Cognitive

Say goodbye to data silos, data gaps, and one way information flows. Say hello to brand new revenue streams and more sustainable business models as data is shared across the value chain.

Bad Bets

Bad Bets unravels big-business dramas that have had a big impact on our world. In Season 2, we delve into the story of Nikola founder Trevor Milton, who promised a future of zero-emission trucks but was taken down by a ragtag bunch of whistleblowers and short sellers. Season 2 is hosted by Ben Foldy.

PAID PROGRAM

The Data Agenda

From major league sports to cutting-edge e-commerce, discover how Amazon Web Services is helping companies reinvent their business with data.

Secrets of Wealthy Women

Empower yourself financially. Successful women executives, workplace pioneers, self-made entrepreneurs, industry trendsetters and money-savvy experts reveal insights on how to get ahead, reach your goals, and achieve professional success. They join host Veronica Dagher every Wednesday.

PAID PROGRAM

UBS Business Unusual

How do you make sense of a business landscape—and a world—that's experiencing profound change? This podcast series focuses on the importance of using alternative data, powerful critical thinking and deep research to help corporate leaders and investors understand the economic picture. wsj.com/ubs-futureworld