WASHINGTON (NEXSTAR) — With chip shortages disrupting supply chains all over the world, Tech giant Intel on Friday announced a $20 billion investment for new semiconductor factories near Columbus, Ohio.

“This is about national security, economic security, and jobs,” President Joe Biden said.

Biden touted the announcement as a groundbreaking step to address the growing need for semiconductor chips, which are essential for smartphones, cars, appliances, medical equipment and more.

“Today, we barely produce 10% of the computer chips despite being the leader in chip design and research and we don’t have the ability to make the most advanced chips right now,” Biden said.

Most semiconductor chips are produced and exported out of East Asia, but Intel’s announcement, along with similar plans from at least two other manufacturers, will change that.

“To be able to say ‘made in Ohio’, ‘made in America’, but we used to always be able to say 25, 30 years ago,” Biden said.

After the pandemic negatively impacted the semiconductor industry, experts foresee this move boosting the U.S. economy and eliminating supply chain issues.

“There’s been a great rethink around manufacturing, supply chain and so forth, as brands seek to expedite their innovations to the marketplace,” Steve Koenig, CTA Market Research vice president, said.

This announcement also sets the stage for future public-private partnerships, encouraging lawmakers to support innovation.

“Manufacturers are strongly behind the passage of USICA, and that not only would help this go faster but invest in worker training,” Carolyn Lee, Manufacturing Institute President, said.

The new factories would add 7000 construction jobs and 3,000 permanent jobs. Completion is expected in 2025.