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ceramics in manufacturing Intel sets sights on Ohio to drastically expand domestic manufacturing with semiconductor mega-site On Friday, Jan. 21, a rumor that had been floating around Ohio news outlets for weeks received a very satisfying con- firmation—semiconductor chip manufac- turer Intel stated that it will commit $20 billion to build a manufacturing mega-site in New Albany, on the out- skirts of Columbus, Ohio. For those outside the industry, the weight of this announcement might not be immediately clear. To clarify its importance, what follows is a look at some of the big events that have affected the semiconductor industry in recent years and how Intel’s announcement fits into the narrative. Semiconductor chips: An essential part of electronics A semiconductor is a material that has an electrical conductivity value fall- ing between that of a conductor (such as many metals) and an insulator (such as glass). Examples of semiconductor materi- als include silicon, germanium, gallium arsenide, and elements near the so-called “metalloid staircase” on the periodic table. In electronics, semiconductor materials are used as the basis for semiconductor chips, i.e., a set of electronic circuits that rest on top of a small flat piece (or “chip”) of semiconductor material, usually sili- con. These so-called integrated circuits are orders of magnitude smaller, faster, and less expensive than those constructed of discrete electronic components. There are different ways for industry to categorize types of semiconductor chips. When categorized by functional- ity, there are memory chips, micropro- cessors, commodity integrated circuits (“standard chips”), and complex systems- on-a-chip. When categorized by types of integrated circuitry, there are digital, analog, and mixed chips. The ongoing semiconductor chip shortage and need for domestic manufacturing When the COVID-19 pandemic started upending everyone’s lives in 2020, several factors culminated into Example of a microprocessor-type semi- conductor chip. Microprocessors contain one or more central processing units (CPUs), which provide the instructions and processing power that a computer needs to do its work. a global semiconductor chip shortage. The January/February issue of the ACerS Bulletin featured a summary of a BCC Research report that looked at these factors, including a sudden demand for consumer electronics, disruption in the supply chain caused by the pandemic, ongoing trade wars between countries, and natural disasters and industrial acci- dents causing semiconductor fabrication plants to close, among other factors. This shortage is causing severe problems for industries that rely on electronics. For example, the United States Commerce Department recently issued a report that found manufac- turers’ median chip inventory levels have plummeted from about 40 days’ supply in 2019 to less than five days, according to a survey of 150 compa- nies worldwide. These tight margins are being reflected in the products available to consumers. The automotive industry is a prime example—General Motors, Honda, Nissan, and Stellantis reported significant declines in sales in later 2021 as chip shortages forced them to idle plants, leaving dealers with few vehicles to offer customers. As a result, much discussion has turned to bolstering domestic manu- facturing of semiconductor chips to avoid such severe shortages in the future. As a recent fact sheet released by the Biden-Harris Administration notes, “The United States used to lead the world in global semiconductor manufacturing. But in recent decades, the U.S. lost its edge—our share of 18 www.ceramics.org | American Ceramic Society Bulletin, Vol. 101, No. 2 Renderings showing early plans for the semiconductor fabrication plants. Credit: Intel Corporation Credit: Yaca2671, Wikimedia (CC BY-SA 3.0)PDF Image | hydrogen as an alternative fuel
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