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TAP TIMES -13- MAY-JUNE 2022
currently no infrastructure to support a
In the time of COVID (from 12) fab.
December Applied announced fourth quar- This was a coup for Ohio, one of the most
ter earnings on Nov. 18, and the “results politically conservative states from one of
couldn’t be finer,” investorplace.com said. the industry’s most liberal companies.
63% gain in net income $20 billion upfront
Net income was $5.9 billion, $6.40 per The estimated upfront costs for the fab,
share, up 63% from the previous year. not due to be completed until 2024, is $20
Revenue of $23 billion was up 34%, and billion. It will cover 1,000 acres.
the net operating margin was 33%. Num-
bers were even better on a non-GAAP
basis.
A shortage of parts for automobiles was
hardly the only consumer sector crippled.
In February 2021, lead times at Broadcom,
one of the largest suppliers of semicon-
ductors for wireless connectivity, extended
to 22.2 weeks from 12.2 weeks a year
earlier.
As the chip
shortage Ohio Gov. Mike DeWine (left) presents Pat Gelsinger, Intel CEO,
deepened, with a plaque memorializing the company’s announcement that
Ohio had won over several competitors for a new fab site. (Intel)
the largest
semiconductor The Ohio announcement, however, was
makers pon- just the first fusilade out of the box for
dered ways Intel. The company had been making addi-
to make more tions to its massive Portland, Oregon fabs
chips. for more than a year.
Japan’s Sony announced that in Novem-
ber last year it would halt production on No quick-fix At nearly the same time as the Ohio an-
several high-end cameras due to parts There seemed nouncement, rumors began to ripple
shortages due to the pandemic and a
fire at its main chip supplier. The A7II to be no through the industry that Intel was looking
was one of the products affected. (Sony) quick-fix for another European site.
to cure the
shortage. Suddenly, the largest chip mak- A German fab
ers, including Intel, Samsung and wafer About two months after the Ohio an-
foundry TSMC were announcing upgrades nouncement, Intel confirmed that it plans
to existing fabs or completely new fab to build a fab in Magdeburg, Germany.
sites.
The investment in the German fab, said
On January 21, Intel stunned the industry Intel, will be about $18.5 billion. In addi-
with its announcement that it would site at tion, Intel will expand its Leixlip, Ireland
least two new fabs in Columbus, Ohio, the fab with $13 billion. Overall, the company
Buckeye state. This will be a first for Ohio said it plans to invest $88 billion in the EU
which has zero semiconductor fabs and over the next decade. next page
