Intel begins construction of two new chip factories in Arizona

The company is aiming to serve customers around the world and help stabilise the global semiconductor supply chain

Intel has begun constructing two new chip factories at its Ocotillo campus in Chandler, Arizona as it bids to serve foundry customers around the globe.

The $20 billion expansion of the two new factories, to be named Fab 52 and Fab 62, will mean Intel’s Ocotillo campus will house a total of six factories. The new fabs, when operational in 2024, will manufacture the company’s most advanced process technologies, including Intel 20A featuring the RibbonFET and PowerVia innovations.

Through this initiative, the company said that it's doing its part to help rebuild US leadership and bring more balance to the global supply chain. It also said that the two new fabs will also provide committed capacity for Intel Foundry Services (IFS), through which the company aims to serve the needs of foundry customers around the globe. 

Intel said that the US has lost ground in semiconductor manufacturing and is at risk of falling further behind, underlining that advanced domestic chipmaking capacity and capabilities are critical for the sake of both economic and national security.

“Today’s celebration marks an important milestone as we work to boost capacity and meet the incredible demand for semiconductors: the foundational technology for the digitization of everything,” said Pat Gelsinger, Intel CEO.

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“We are ushering in a new era of innovation – for Intel, for Arizona and for the world. This $20 billion expansion will bring our total investment in Arizona to more than $50 billion since opening the site over 40 years ago. As the only U.S.-based leading-edge chipmaker, we are committed to building on this long-term investment and helping the United States regain semiconductor leadership.”

The company said the new investment will create over 3,000 high-tech, high-wage jobs, 3,000 construction jobs, and support an estimated 15,000 additional indirect jobs in the local community. 

TSMC is also thinking of adding five additional chip factories in Arizona, Intel's rival to which it lost its lead in making the fastest chips, according to Reuters. Intel is set to use TSMC to produce subcomponents of chips which it will put together in its own factories, and TSMC will also make Intel's 'Alchemist' graphics chips using the Taiwanese company's N6 chipmaking technology.

In March, Intel unveiled a new strategy to reinvigorate its business following a troublesome 2020. At the time, the company launched Intel Foundry Services (IFS) which the company hopes will become a major provider of foundry capacity in the US and Europe.

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