WASHINGTON/SAN FRANCISCO, Jan 20 (Reuters) - Intel Corp will invest $20 billion in two new plants in Ohio to make advanced chips, the company said on Friday, the first step to a "mega-site" that can accommodate eight chip factories costing $100 billion.

Chief Executive Pat Gelsinger is driving Intel plans to expand, especially in Europe and the United States, as it seeks to heat up competition with global rivals and respond to a world-wide microchip shortage.

Gelsinger previously said he expected the chip shortages to last into 2023.

In September, Intel broke ground on two factories in Arizona as part of its turnaround plan to become a major manufacturer of chips for outside customers.

Gelsinger will meet with Biden at the White House later on Friday, Intel said.